Amazon.com Inc. established a secured loan facility allowing the company to borrow up to $80 billion against hardware purchases, according to a quarterly filing released Thursday. The facility can be accessed from the beginning of 2027 through the third quarter of 2028. Lenders will receive collateral rights over certain assets purchased through the facility, though the filing did not specify which assets are included.
Amazon has primarily funded data center construction and chip purchases through cash generated from its cloud-computing and retail businesses, along with corporate bond sales. The new arrangement marks a shift from the company's previous approach, as competitors have used creative funding structures such as joint financing agreements with investment groups or leasing chips purchased by other entities.
"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," Amazon Web Services Chief Executive Officer Matt Garman said Friday in a Bloomberg Television interview.
Amazon reported Thursday a larger-than-expected increase in capital spending for the third quarter. The spending resulted in a free cash outflow of $42.4 billion for the year ended Sept. 30. Shares fell about 2% at midday in New York on Friday.
The company's total spending commitments, which include debt and interest, leases not yet commenced, obligations to acquire property and equipment and other items, reached $883 billion at the end of September. This represents a 36% increase from three months earlier and more than double the figure from the same period in 2025.
Investors tracking Amazon should monitor whether the company draws on this facility and how aggressive capital spending remains as the company pursues artificial intelligence infrastructure buildout.