STOCKS | Amazon Sets Up $80 Billion Supplier Financing Facility to Fund AI Investments

Amazon has established an $80 billion supplier-related financing arrangement to help fund its AI investments. According to Sina Finance, Amazon disclosed in a quarterly filing that it may draw on the guaranteed loan facility at its discretion from early 2027 through the third quarter of 2028. Lenders will receive security interests in some assets purchased under the arrangement; the filing did not specify the assets, and an Amazon spokesperson declined to comment. Amazon has largely funded data center construction and chip purchases with cash generated by its cloud and retail businesses and its largest-ever bond issuance. Competitors have also used investment partnerships to finance data centers and leased chips purchased by other entities, with many such deals focused on Nvidia chips. AWS CEO Matt Garman said Amazon was seeking responsible ways to finance a major opportunity and was working with partners to balance cash flows as it accelerates expansion. Amazon’s capital spending rose more than expected in its third-quarter results. Spending led to a $42.4 billion net outflow in free cash flow over the year ended September 30. Amazon shares fell about 2% around midday Friday in New York. At the end of September, Amazon’s total spending commitments—including debt and interest, leases not yet started, property and equipment purchases, and other items—reached $883 billion, up 36% from three months earlier and more than double the level a year earlier.