Amazon secures $17.5 billion credit line to fund AI expansion
Amazon has signed a $17.5 billion delayed‑draw term loan facility, organized by a Citigroup‑led consortium that includes Bank of America, JPMorgan Chase, HSBC and Wells Fargo. The loan allows Amazon to draw funds incrementally, providing flexible financing for its rapidly growing AI‑related capital spending. The company said the proceeds will be used for “general corporate purposes,” which analysts interpret as supporting data‑center expansion, specialized AI chips, and other AWS infrastructure projects tied to generative‑AI services.
The financing comes two days after Amazon raised C$14 billion (about $10 billion) in a record Canadian bond sale, bringing its new funding in less than 48 hours to roughly $31.5 billion. Amazon projects around $200 billion in capital expenditures for 2026, with AI driving a large share of that outlay. The loan was disclosed in regulatory filings and caused a modest dip in Amazon’s stock price at the time of the announcement. The deal reflects the broader trend of major tech firms turning to external debt markets to support the massive investment required to stay competitive in the AI race.