Amazon has secured a massive $17.5 billion delayed draw term loan facility from Citibank and other major global lenders, according to a June 10 SEC filing. The facility, arranged by a syndicate including Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and BofA Securities, provides the company with flexible borrowing capacity through September 30.
The loan is intended for general corporate purposes—including investments, capital expenditures, and debt repayment—but Bloomberg linked the financing directly to Amazon’s accelerating artificial intelligence spending. An Amazon spokesperson confirmed the proceeds may support infrastructure costs and AI company investments. Amazon has outlined plans for approximately $200 billion in AI infrastructure and related capex this year, with reports indicating potential investments of up to $50 billion in OpenAI and an existing $10 billion in Anthropic, with another $15 billion possible.
The new credit facility comes just days after Amazon sold C$14 billion (about $10 billion) in bonds, pushing total new borrowing above $31 billion within 48 hours. Since March, the company has tapped debt markets in euros, U.S. dollars, and Swiss francs. The loan facility, which matures three years from any draw, contains customary covenants and default events but no financial covenants.
The financing underscores a broader industry trend: Big Tech firms are turning to record debt levels to fund AI buildouts. Alphabet recently announced plans to raise up to $80 billion, and Meta unveiled a $30 billion bond sale. While Amazon remains financially robust, investors reacted cautiously, with AMZN stock slipping slightly on concerns about mounting leverage and uncertain returns on AI investments.
