Amazon has signed an agreement to borrow $17.5 billion from a group of financial institutions, adding to the massive capital it's raising to cover the skyrocketing costs of generative AI. The loan is being led by Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and Bank of America Securities.
The borrowing comes in the form of a delayed-draw term loan, which lets Amazon pull funds gradually on its own schedule rather than taking the entire amount upfront — giving it flexibility for future spending. Just two days earlier, Amazon completed a $14 billion CAD bond issuance. Combined, the two moves have brought in nearly $27.5 billion in fresh capital within 48 hours.
While the company officially says the money will go toward general corporate purposes, it's no secret that tech giants are turning to credit and bond markets in a big way as the cost of building out AI infrastructure — chips, data centers, and everything in between — keeps climbing.