TL;DRAmazon agreed to a $17.5B loan led by Citigroup. Total debt is now over $225B, up 50% in a year. The money funds a $200B AI capex plan and equity stakes.
Amazon has agreed to a $17.5 billion delayed-draw term loan led by Citigroup, the latest in a borrowing spree fuelled by its race to build AI infrastructure. The cash is available through the end of September. Each draw has a three-year repayment window. JPMorgan Chase, Bank of America, HSBC, and Wells Fargo are among more than a dozen banks in the syndicate.
The loan comes days after Amazon sold C$14 billion ($10 billion) in Canadian dollar bonds, the largest corporate bond sale on record in that currency. Since March, the company has also sold bonds in euros, US dollars, and Swiss francs. As of 31 March, Amazon’s total short- and long-term debt, including lease payments, exceeded $225 billion. A year earlier, that figure was closer to $150 billion.
Amazon said the loan is for general corporate purposes, which may include “supporting business investments, funding future capital expenditures, and repaying debt.” CreditSights analysts said it could help fund Amazon’s equity investments in AI companies. Amazon committed up to $50 billion in cash to OpenAI in February, initially $15 billion with the rest tied to conditions like going public. It also invested $10 billion in Anthropic this year, with up to $15 billion more over time.
