Amazon Establishes $80 Billion Supplier Financing Arrangement to Fund AI Infrastructure Investment

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Until now, Amazon has mainly used cash generated by its cloud computing and retail businesses, as well as the largest bond issuance in the company's history, to fund data center construction and chip procurement.

But Amazon had previously largely not adopted some of the innovative financing arrangements used by competitors, such as jointly funding data center construction with investment groups, or leasing chips purchased by other entities. Many such deals focus on Nvidia chips. These chips support most AI computing and are often the single most expensive component of newly built data centers.

In a quarterly filing disclosed after reporting results on Thursday, Amazon said the company may, at its discretion, draw on this guaranteed loan facility between early 2027 and the third quarter of 2028. Lenders will receive a security interest in some of the purchased assets related to the financing arrangement. Amazon did not specify in the filing exactly which assets these include, and a spokesperson declined to comment.

"When we see such a huge opportunity in front of us, we are also looking for ways to finance it responsibly so that we can scale as much as possible to meet customer demand," Matt Garman, chief executive of Amazon Web Services (AWS), said in an interview with media on Friday. He said Amazon is working with partners on how to balance some of the cash flow amid a major acceleration in expansion.

When Amazon reported third-quarter results on Thursday, it disclosed that capital expenditures rose more than expected. In the year ended September 30, these expenditures resulted in a net free cash flow outflow of $42.4 billion. Amazon shares were down about 2% in New York midday trading on Friday.

As of the end of September, Amazon's total various spending commitments reached $883 billion, including debt and interest, leases not yet commenced, obligations to acquire property and equipment, and other items, up 36% from three months earlier and more than double the level in the same period of 2025. news_keyword_pub,usstock,AMZN iframe below body text iframe below body text General statement General statement QR code at end start QR code at end start

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