Amazon activates $80 billion supplier loan facility to help fund AI

Amazon.com Inc. has set up a supplier financing arrangement that allows it to borrow up to $80 billion secured by the value of the hardware it procures. The secured credit facility can be drawn at the company's discretion between early 2027 and the third quarter of 2028, with lenders receiving a security interest in certain of the purchased assets. Amazon's third-quarter earnings showed capital expenditure growth exceeding expectations, resulting in a free cash outflow of $42.4 billion for the year ended September 30.