3M and Amazon Web Services announced an expanded optical connectivity collaboration in a release issued from Saint Paul on 21 October. AWS plans to deploy 3M’s Expanded Beam Optical platform in its data centres, while 85% of a related Amazon share warrant will vest fully if cumulative product payments reach $6 billion, Benzinga reported.
Key points
- Amazon’s seven-year warrant covers up to 3.16 million 3M shares at $164.89 each, Benzinga reported.
- The $6 billion threshold concerns cumulative payments for data-centre products, rather than an order already placed, according to MEXC.
- 3M expects the collaboration and related investments to support more than 500 jobs directly and indirectly.
Amazon’s seven-year warrant
3M issued the warrant to a wholly owned Amazon subsidiary. It covers up to 3.16 million shares at an exercise price of $164.89 each and can be exercised over seven years, Benzinga reported. The publication put the value of the shares covered by the warrant at about $521.4 million.
The purchase-linked portion accounts for 85% of the warrant shares. Those shares vest as Amazon pays for optical connectivity and other data-centre products, reaching full vesting once its cumulative qualifying payments total $6 billion. The remaining shares vest on event-based milestones. Amazon would pay the exercise price to acquire shares under the warrant, separately from its payments for 3M products.
The $6 billion figure is a vesting threshold rather than an order Amazon has already placed or revenue 3M can immediately recognise, MEXC reported. It said 3M’s financial return would depend on future orders and deliveries. The warrant gives Amazon a potential equity position alongside its purchases from the supplier.
3M shares rose 5.43% to $170.80 in after-hours trading on Monday 19 October, Benzinga reported. MEXC put the after-hours rise on 19 October at more than 5% and reported that 3M had filed details of the warrant with the US Securities and Exchange Commission that day.
AWS deployment follows Microsoft’s Azure agreement
AWS plans to deploy and scale 3M’s Expanded Beam Optical platform across its data-centre infrastructure, 3M said in its 21 October release. The technology is designed to make fibre connections more tolerant of dust and contamination than traditional physical-contact optical connectors, MEXC reported. That design could reduce the cleaning and maintenance involved in making connections.
3M announced a partnership with Microsoft in July 2026 to deploy the same technology in Azure data centres, according to Benzinga. The AWS collaboration gives 3M another named cloud customer for the platform, alongside the earlier Microsoft agreement. AWS’s announcement concerns a planned deployment and scale-up, while Amazon’s warrant links most of its potential share purchases to payments for 3M products.
Wendy Bauer, group president of 3M’s Transportation and Electronics Business Group, said the companies would work on deploying the optical platform. Jens Gruenkemeir, Amazon’s vice-president of supply chain and procurement, said the collaboration would support jobs at 3M. Both executives’ comments were included in 3M’s release.
Menomonie capacity and 2027 hiring
3M had previously announced plans to double production capacity at its Menomonie, Wisconsin, manufacturing facility, the company said. It expects the AWS collaboration to support US manufacturing partners involved in expanding equipment and production across the supply chain. The capacity plan concerns manufacturing, while the warrant’s vesting depends on Amazon’s qualifying payments.
3M expects its optical connectivity business to contribute nearly $0.5 billion to the US economy. It also expects the collaboration and related investments to support more than 500 jobs directly and indirectly. The company said the planned positions would cover work with customers, technology development and supply-chain operations across its optical networking portfolio.
3M expects more than 100 new roles to be created through 2027 across Minnesota, Texas and Wisconsin.
