Amazon Establishes $80 Billion Loan for AI Infrastructure

Amazon.com Inc. established a secured loan facility of up to $80 billion to finance the purchase of technology infrastructure assets, primarily to support its artificial intelligence hardware expansion. According to a quarterly filing, the company can begin borrowing from the facility in the first quarter of 2027, with the borrowing window closing in the third quarter of 2028.

Borrowings will accrue variable interest and mature five years after each draw. To secure the facility, Amazon is granting security interests in certain purchased assets. This funding strategy follows a period of significant spending; the company expects its 2026 cash capital expenditures to reach approximately $220 billion, with further meaningful increases projected for 2027.

Financial data for the 12 months ending September 30 shows the company's free cash flow was a negative $42.4 billion. Additionally, total principal contractual commitments rose 36% over the prior quarter to $883.6 billion. Matt Garman, CEO of Amazon Web Services, stated that the company is seeking ways to responsibly fund the large opportunity in front of them to go as big as possible for customers.