Amazon.com, Inc. (AMZN.US) Continues to Fund AI Spending: Establishes Hardware-Backed Financing Arrangement of Up to US$80 Billion, Total Spending Commitments Rise to US$883 Billion

Amazon.com, Inc. (AMZN.US) has established a supplier financing arrangement under which it can borrow up to US$80 billion backed by the value of hardware it purchases. This is the company's latest move to maintain financial flexibility as it pours hundreds of billions of dollars into AI infrastructure. To date, Amazon.com, Inc. has been funding data center construction and chip procurement with cash from its cloud computing and retail businesses, as well as the largest corporate bond issuance in the company's history. But the company has largely eschewed the kinds of innovative financing arrangements used by some competitors, such as partnering with investment groups to finance data center construction or leasing chips purchased by other entities. Many of these transactions revolve around NVIDIA Corporation (NVDA.US) chipswhich power most AI computing and are often the most expensive single component in newly built data centers. Amazon.com, Inc. disclosed in a quarterly filing released Thursday after its earnings report that the secured loan facility can be drawn at the company's discretion, with a drawdown period from early 2027 through the third quarter of 2028. Lenders will receive security interests in certain purchased assets related to the financing arrangement. Amazon.com, Inc.'s filing did not specify which assets these include, and a spokesperson declined to comment. "When we see such a massive opportunity in front of us, we're also looking for ways to finance it responsibly so that we can scale as large as possible for our customers," Matt Garman, CEO of Amazon.com, Inc.'s cloud unit AWS, said in an interview on Friday. He said Amazon.com, Inc. is working with partners to "look at how to balance some of that cash flow as we dramatically accelerate expansion." On Thursday, Amazon.com, Inc.'s third-quarter earnings showed capital expenditure growth higher than expected. This spending resulted in a net free cash flow outflow of US$42.4 billion in the year ended September 30. Amazon.com, Inc.'s total spending commitmentsincluding debt and interest, leases not yet commenced, obligations to acquire property and equipment, and other itemsswelled to US$883 billion at the end of September, up 36% from three months earlier and more than double the level in the same period of 2025.