3M issues warrant to Amazon unit tied to $6 billion in data center orders

The warrant lets the Amazon subsidiary buy up to 3,162,015 3M shares at $164.89 each over seven years as part of an expanded supply relationship.

3M has entered an expanded commercial relationship with a wholly owned subsidiary of Amazon.com, effective October 19, 2026. As part of the deal, 3M issued the Amazon subsidiary a warrant to purchase up to 3,162,015 shares of 3M common stock at $164.89 per share, exercisable over seven years.

Most of the warrant, 85% of the shares, vests as Amazon pays 3M for optical connectivity and other data center products, with full vesting triggered once those cumulative payments reach $6 billion. The rest vests when certain milestones tied to specific events in the relationship are met.

The structure links 3M's payout to how much Amazon actually spends on its optical connectivity and data center hardware, rather than locking in a fixed supply contract. That means the benefit to 3M builds only as orders come in, reaching its maximum once purchases total $6 billion.

Because the warrant runs seven years and includes milestones tied to future events, the relationship is designed to grow over time rather than deliver one large order upfront. For investors, that changes how to read 3M's future data center revenue: it becomes a multi-year signal tied to hyperscaler capital spending, an area where demand has outpaced much of the company's traditional industrial business.