$17.5B Amazon Loan Reveals AI's Brutal Cash Hunger

Amazon has lined up a $17.5 billion senior unsecured delayed draw term loan facility, giving the company another large pool of debt financing as its AI infrastructure spending accelerates.

The loan agreement with Citibank and more than a dozen other banks gives Amazon the option to borrow over time rather than take the full amount immediately, according to PYMNTS. The bank commitments expire on Sept. 30 unless Amazon fully draws the facility before then.

Amazon lines up a Citibank-led loan before the Sept. 30 deadline

The structure matters. A delayed draw term loan facility lets Amazon tap committed financing as needed, which fits a capital plan where spending can arrive in waves rather than all at once.

Any amount borrowed under the facility matures three years from the date Amazon draws it, according to the company’s Wednesday (June 10) filing with the Securities and Exchange Commission. Amazon kept the stated use broad.

“Borrowing under the DDTL Facility will be used for general corporate purposes,” Amazon said in the filing.

Bloomberg reported, via PYMNTS, that an Amazon spokesperson said those purposes can include “supporting business investments, funding future capital expenditures, and repaying debt.”

That wording gives Amazon flexibility. It also avoids tying the entire loan directly to AI, even though the timing lands squarely inside the company’s AI spending surge.

A Bloomberg report carried by Transport Topics said the loan pays 0.625 percentage point to 0.875 percentage point over SOFR, depending on Amazon’s credit rating. The same report named JPMorgan Chase & Co., Bank of America Corp., HSBC, and Wells Fargo & Co. among the banks involved.

AI infrastructure is pulling Amazon deeper into debt markets

The new facility follows a run of financing activity. PYMNTS cited Bloomberg reporting that Amazon sold $14 billion Canadian dollars, about $10 billion, of Canadian dollar high-grade bonds on Monday (June 8).

Since March, Amazon has also sold bonds in euros, U.S. dollars, and Swiss francs, according to the same report. That pattern shows Amazon widening its funding sources instead of relying on one market or one currency.

The AI link is hard to miss, even if Amazon’s filing uses broader language. Bloomberg reported that the new loan could help fund Amazon’s artificial intelligence investments.

That includes Amazon investing as much as $50 billion in cash in OpenAI, when that company meets conditions, and a $10 billion investment in Anthropic that may be followed by another $15 billion, according to the report cited by PYMNTS.

Amazon has also said it plans to spend about $200 billion on AI infrastructure and other capital expenditures this year, per the report. That figure is for Amazon broadly, not just AWS.

The pressure point is Amazon Web Services. PYMNTS reported in April that Amazon’s first-quarter earnings call focused heavily on AWS, AI infrastructure, and chips that Amazon said are becoming a major business of their own.

Amazon CEO Andy Jassy told investors during that call that Amazon has “never seen a technology grow as rapidly as AI.” The company’s Bedrock platform saw customer spending grow 170% quarter over quarter and processed more tokens in the first quarter than in all prior years combined.

AWS is the strategic center, but the filing keeps the money flexible

For Amazon, this financing is both a cushion and a signal. A senior unsecured loan from major banks suggests lenders are comfortable extending large-scale credit to the company while its capital needs climb.

The facility also gives Amazon timing control. It can wait, draw in pieces, or borrow the full amount before Sept. 30 if management sees faster capital needs.

That flexibility matters because AI infrastructure spending is lumpy. Data centers, custom chips, networking equipment, and cloud capacity don’t always match neat quarterly calendars.

Amazon is not alone in the race for AI computing capacity. Supplied related reporting names Microsoft, Google, and Meta as other major tech companies spending heavily to compete for AI cloud workloads.

The debt-market angle is spreading beyond Big Tech, too. XOOMAR has tracked credit pressure in other corners of the economy, including the $37B Rent BNPL Boom Turns Housing Pain Into Debt Trap and the 49% Credit Gap Hands Chase a Small Business Opening. Amazon sits at the opposite end of that spectrum: a top-tier borrower using bank capacity to fund expansion on its own terms.

Still, the filing leaves one major question unanswered. Amazon has not said how much of the $17.5 billion it plans to draw, or when.

Drawdown timing now becomes the tell

Investors now have a short list of signals to track.

First, whether Amazon draws the full facility before Sept. 30. A full draw would suggest management wants the cash secured quickly.

Second, whether future filings or earnings commentary tie the borrowing more directly to AI infrastructure, AWS capacity, debt repayment, or broader corporate needs.

Third, whether Amazon’s capital spending starts showing up in AWS growth, AI product adoption, and margin performance. The company can fund the buildout. The harder test is proving the return.

The risk is not that Amazon lacks access to money. The risk is that the AI buildout demands huge spending before revenue catches up.

For now, the facility gives Amazon room to move. The next useful signal won’t be the headline size of the loan. It will be how fast Amazon draws it, and whether management can connect that borrowing to durable cloud growth rather than just a larger capital bill.

The Bottom Line

• Amazon is securing a $17.5 billion borrowing option as AI infrastructure spending ramps up.
• The delayed draw structure gives Amazon flexibility to borrow as capital needs arise.
• The deal signals continued pressure on major tech companies to fund expensive AI buildouts.

Originally published on XOOMAR. For more news and analysis, visit XOOMAR.