3M Expands Amazon Data Center Partnership, Shares Gain

3-line summary

• 3M announced an expanded commercial relationship with Amazon under which Amazon will purchase data center products, including optical connectivity products, from 3M; the core technology is 3M's Expanded Beam Optics, which Microsoft adopted in July as the first hyperscaler to deploy it in AI data centers.
• 3M issued warrants to an Amazon subsidiary allowing purchase of up to 3.16 million shares at $164.89 per share over seven years, with the warrant shares valued at more than $521 million; about 85% of the warrant shares vest in full once Amazon's purchases reach $6 billion, with the remaining roughly 15% vesting upon milestone conditions.
• 3M shares rose more than 5% in after-hours trading following the announcement, amid broader data center infrastructure investment by major tech companies responding to AI and cloud computing growth.

This summary is our own processing of the source article; see the source link below for full context.