Amazon sets up $80 billion supplier financing for AI hardware

Investing.com -- Amazon.com Inc. established supplier financing arrangements that allow the company to borrow up to $80 billion against hardware purchases, according to a quarterly filing released Thursday.

The secured loan facility can be accessed from the beginning of 2027 through the third quarter of 2028. Lenders will receive collateral rights over certain assets purchased through the facility, though Amazon's filing did not specify which assets are included.

The company has primarily funded data center construction and chip purchases through cash generated from its cloud-computing and retail businesses, along with its largest corporate bond sales to date. Amazon had previously not used the type of creative funding structures employed by competitors, such as joint financing agreements with investment groups or leasing chips purchased by other entities.

"When we see such a really large opportunity in front of us, we're looking for ways to also responsibly fund that so that we can go as big as possible for our customers," Amazon Web Services Chief Executive Officer Matt Garman said Friday in a Bloomberg Television interview.

Amazon reported Thursday a larger-than-expected increase in capital spending for the third quarter. The spending resulted in a free cash outflow of $42.4 billion for the year ended Sept. 30. Shares fell about 2% at midday in New York on Friday.

The company's total spending commitments, which include debt and interest, leases not yet commenced, obligations to acquire property and equipment and other items, reached $883 billion at the end of September. This represents a 36% increase from three months earlier and more than double the figure from the same period in 2025.

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