Amazon sets up $80 billion supplier loan to fund AI spending
Amazon has arranged a supplier financing facility allowing it to borrow up to $80 billion against the value of hardware purchases. The move, disclosed in a quarterly filing after its earnings report on Thursday, aims to fund AI infrastructure without relying on traditional debt or cash flows from AWS and retail operations. The facility, available from early 2027 through the third quarter of…
Key points
- Amazon secures a $80 billion supplier loan facility for AI hardware purchases, available from early 2027 to Q3 2028
- Lenders gain collateral rights over unspecified purchased assets, per Amazon’s quarterly filing
- Amazon’s total spending commitments hit $883 billion in September, up 36% from June and over double year-over-year
In an interview on Bloomberg Television, Matt Garman, CEO of Amazon Web Services, said the company is exploring ways to balance cash flows as it scales AI aggressively. Amazon’s third-quarter earnings showed a $42.4 billion free cash outflow for the year ended September 30, contributing to a 2% stock decline midday. The facility marks a shift from Amazon’s past avoidance of creative financing deals, which competitors like Nvidia’s partners have used to fund data center construction and chip purchases.
Amazon Taps $80 Billion Supplier Loan Facility to Help Fund AI
finance.yahoo.com · 30 October 2026
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2sources- AMZN Stock Set To Drop For Third Straight Week: Amazon Taps $80B Credit Line To Fund AI CapexPress · stocktwits.com ·
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