Amazon discloses a secured loan facility of up to about $80 billion for technology infrastructure purchases

Amazon disclosed a secured loan facility of up to about $80 billion for technology infrastructure purchases in its quarterly report, which the SEC accepted on Oct. 29. The filing describes the purchases only as technology infrastructure assets and does not mention artificial intelligence. Bloomberg’s headline describes the facility as helping fund AI.

The filing says: “We enter into supplier financing arrangements that provide for certain purchases of technology infrastructure assets, including a secured loan facility (the ‘Loan Facility’) providing for borrowings at our discretion, from Q1 2027 through Q3 2028 and subject to variability based on the extent and timing of purchase orders and pricing terms, of up to approximately $80.0 billion, which accrue interest at variable rates and mature five years from the date of each borrowing.”

It adds: “We will grant a security interest in certain purchased assets in connection with the Loan Facility.” Amounts outstanding for assets purchased under the facility will be classified as long-term debt, the filing says. The filing does not name the lenders or suppliers or identify the assets, and it does not say whether any amount has been borrowed. AI Tech Daily infers that nothing has been drawn because the borrowing window begins in Q1 2027; the filing does not state that.

AWS chief executive Matt Garman was asked about the financing on Friday on Bloomberg Television by Bloomberg’s Ed Ludlow, who described it as about $80 billion of supplier financing for technology infrastructure starting next year. Garman answered: “When we see such a really large opportunity in front of us, we’re looking for ways to also responsibly fund that so that we can go as big as possible for our customers,” according to a transcript of the Bloomberg Tech video. He said Amazon looks “across our partner ecosystem and others to figure out how we can balance some of those cash flows” during the ramp-up. He did not name lenders or suppliers.

The same filing gives context on Amazon’s spending. Cash capital expenditures were $75.9 billion in the third quarter and $172.2 billion for the first nine months of 2026, the company said. It continues to expect about $220 billion in 2026 and said it expects cash capital expenditures to increase meaningfully in 2027, primarily driven by investments in technology infrastructure.

Free cash flow, which Amazon defines as operating cash flow less purchases of property and equipment, net of proceeds from sales and incentives, was an outflow of $42.4 billion for the 12 months ended Sept. 30.

An Amazon spokesperson declined to comment on which assets are covered, Quartz reported, citing Bloomberg.

Amazon discloses a secured loan facility of up to about $80 billion for technology infrastructure purchases

Sources