After news of a new bond financing round, Amazon has secured a large loan from banks. According to Bloomberg, citing informed sources, the tech company has signed loan agreements totaling approximately $17.5 billion with multiple financial institutions, indicating that major tech firms continue to expand their funding for AI infrastructure.
Approximately $31.5 billion in new funding added within 48 hours.
This loan comes just two days after the announcement of Amazon’s bond issuance in Canada. Previously, reports indicated that Amazon planned to raise approximately $14 billion through the Canadian bond sale. Combined, these two financing efforts have brought Amazon’s total new funding to approximately $31.5 billion within about 48 hours.
The report mentioned that institutions participating in this loan include Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and Bank of America Securities, among others.
Loans can be drawn as needed.
This financing is described as a "delayed-draw term loan," meaning Amazon does not need to receive all the funds at once but can draw them in tranches according to its own schedule. This structure typically provides borrowers with greater flexibility in fund allocation and helps align funding with project timelines.
Amazon has not yet disclosed the specific use of this new funding. Reuters previously reported that the loan will be used for "general corporate purposes."
Tech giants continue to increase their AI capital expenditures.
Amazon is not an isolated case. As costs for AI model training, chip procurement, and data center construction continue to rise, major tech companies are accelerating fundraising to support a new wave of infrastructure expansion.
Recently, Alphabet, Google’s parent company, announced plans to raise $80 billion through stock sales to support investments while maintaining a strong balance sheet. Meta has also announced plans for a $30 billion bond offering, which would be the largest debt issuance in the company’s history.
Currently, the market’s focus has shifted from whether these investments are necessary to whether such intense capital expenditures will ultimately generate returns commensurate with the outlay.