Amazon-Backed X-Energy IPO Gains 27% While AWS Absorbs $150M Loss
Amazon realized a windfall as its 29% stake in X-Energy saw shares debut at $29.20, 27% above IPO price, valuing its holding at about $1.92 billion. Meanwhile, AWS incurred a $150 million unrecoverable cost after drone strikes in Bahrain and UAE, highlighting insurance gaps for war-related data center damage.
1. X-Energy IPO and Amazon’s Stake
X-Energy raised $1.02 billion by pricing 44.3 million shares at $23, debuting at $29.20 on Nasdaq. Amazon held 65.8 million pre-IPO shares (29%), valuing its stake at roughly $1.92 billion on day one, with a fully diluted company valuation near $12 billion.
2. AWS Data Center Loss from Drone Strikes
Last month’s drone strikes in Bahrain and the UAE disrupted AWS operations for weeks, leading to $150 million in customer credits and uninsured losses. Standard war exclusions left AWS to absorb the cost, underscoring risks in geopolitical hotspots for cloud infrastructure.