Amazon discloses $80bn loan facility for AI infrastructure

Amazon has arranged a secured loan facility of up to $80 billion under its supplier financing arrangements for technology infrastructure purchases, according to its third-quarter SEC filing. The facility gives Amazon discretion to borrow from the first quarter of 2027 through the third quarter of 2028, the filing states.

Each borrowing would carry a variable interest rate and mature five years after it is drawn. Amazon will grant lenders a security interest in certain assets purchased through the facility, and outstanding borrowings would be recorded as long-term debt. The filing does not name the lenders or specify which equipment will serve as collateral.

The arrangement differs from the cash and unsecured bonds Amazon has used for most of its expansion. The company has not drawn on the new facility, and a spokesperson declined to comment, 24/7 Wall St. reported.

Amazon's spending on infrastructure has risen sharply. Cash capital expenditure reached $75.9 billion in the third quarter of 2026, up from $34.2 billion a year earlier, and the company expects about $220 billion for the full year. AWS net property and equipment climbed from $190.1 billion at the end of 2025 to $313 billion on September 30, 2026.

AWS depreciation and amortisation expenses rose to $9.23 billion in the third quarter from $5.65 billion a year earlier, reflecting the larger infrastructure base.

The higher spending drove Amazon's trailing-twelve-month free cash flow to an outflow of $42.4 billion, compared with positive free cash flow of $14.8 billion a year earlier. Operating cash flow rose 29% to $168.3 billion, but capital purchases exceeded it.

Long-term debt increased to $173.1 billion at the end of September from $65.6 billion at the end of 2025. Total contractual commitments reached $883.6 billion, up 36% from the prior quarter and more than double the level a year earlier, 24/7 Wall St. reported. Those commitments include $159.6 billion of property and equipment purchase commitments and $164.9 billion in leases that had not yet commenced.

AWS results have supported the spending. Revenue grew 39% to $46 billion in the third quarter, which Amazon said was its fastest growth in nearly five years. Operating income increased to $17.8 billion from $11.4 billion.

On Amazon's earnings call, CEO Andy Jassy said the company is adding AI capacity at a rapid pace. "We're installing an AI accelerator about every 14 seconds," Jassy said. He also said Amazon still expects about $220 billion in 2026 cash capital spending, the majority for AWS, and that he expects to spend meaningfully more in 2027.

AWS CEO Matt Garman said on Bloomberg Television on Friday that the financing is intended to support that expansion. "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," Garman said.