Amazon.com Inc has secured a US$17.5 billion loan facility from a group of major global lenders as the e-commerce and cloud computing giant accelerates spending on artificial intelligence (AI) infrastructure.
According to a regulatory filing dated June 8, the financing was arranged by a consortium comprising Citibank, BofA Securities, JPMorgan Chase, HSBC and Wells Fargo. Amazon said the proceeds will be used for general corporate purposes.
The facility is structured as a delayed draw term loan, allowing Amazon to access the funds progressively as required rather than receiving the entire amount upfront.
The latest financing move comes as major technology companies significantly increase investments in AI-related infrastructure, including data centres, advanced semiconductors and computing capacity needed to support growing demand for generative AI services.
Industry estimates indicate that combined capital expenditure by major technology firms, including Alphabet and Meta Platforms, is expected to exceed US$700 billion this year, compared with approximately US$600 billion previously.
The surge in spending has prompted several technology giants to increasingly tap debt markets instead of relying solely on cash reserves. Meta filed in October for a bond offering of up to US$30 billion, while Alphabet recently disclosed plans to issue Japanese yen-denominated bonds for the first time.
Amazon has also been active in raising additional funding. Earlier this week, the company filed for a five-part debt offering in Canada worth up to C$14 billion.
The financing underscores the intensifying race among technology companies to build AI infrastructure as demand for artificial intelligence applications continues to grow globally.
Amazon, through its cloud unit Amazon Web Services (AWS), remains one of the largest providers of cloud computing services and has been investing heavily in AI capabilities to compete with rivals including Microsoft, Google and Meta.
The latest funding facility is expected to provide Amazon with additional financial flexibility as it expands its AI ecosystem and strengthens its position in the rapidly evolving technology landscape. Based on a Reuters report.
Reuters
