AMAZON.COM has secured a $17.5 billion loan from lenders including Citibank, the tech giant said, as it ramps up spending on artificial intelligence infrastructure.
The lenders also include BofA Securities — the corporate and investment banking division of Bank of America, JPMorgan Chase, HSBC and Wells Fargo, Amazon said in a filing dated June 8, adding that the funding is for general corporate purposes.
Big Tech companies, including Alphabet and Meta, have signaled that spending on AI would not slow down, with combined outlays now set to surpass $700 billion this year, up from about $600 billion previously.
To finance their AI build-outs, some of the world's largest technology companies are tapping debt markets and raising equity, marking a shift from relying mainly on cash reserves to fund expansion.
Facebook parent Meta in October filed for its largest bond offering ever of up to $30 billion, while Google owner Alphabet last month disclosed its plans to sell Japanese yen-denominated bonds for the first time.
Amazon's latest agreement is for a delayed draw term loan facility, which means it can withdraw amounts as needed instead of receiving the entire amount upfront.
Earlier this week, Amazon filed for a five-part debt offering in Canada for up to C$14 billion as global companies are drawn to Canada's maple bond market this year, driven by strong investor appetite and cheaper borrowing costs.
This five-part deal from Amazon includes maturities ranging from 2029 to 2056.