Amazon.com Inc. disclosed an $80 billion supplier loan facility running from 2027 to late 2028 to finance hardware and preserve cash while expanding artificial intelligence infrastructure. The arrangement, disclosed in October 2026 alongside Q3 earnings, gives lenders collateral rights over purchased assets. Amazon reported a $42.4 billion free cash outflow for the year ended September 30, 2026, as total spending commitments doubled year-over-year to $883 billion.
Terms of Amazon's supplier financing facility
- ▪Lenders under Amazon.com Inc.'s $80 billion financing facility will receive collateral rights over a portion of the assets purchased through the facility
- ▪Amazon.com Inc. can draw on the $80 billion supplier loan facility disclosed on 29 October 2026 at its discretion from the beginning of 2027 through the third quarter of 2028
- ▪Amazon.com Inc. established a supplier financing facility allowing the company to borrow up to $80 billion against the value of hardware it purchases
- ▪Amazon.com Inc. established the $80 billion financing agreement disclosed on 29 October 2026 to maintain financial flexibility while expanding artificial intelligence infrastructure
Amazon's recent financial results and spending
- ▪Amazon.com Inc.'s shares fell by approximately 2% during midday trading in New York on October 30, 2026, following its third-quarter capital spending disclosure
- ▪Amazon.com Inc. recorded a free cash outflow of $42.4 billion for the 12-month period ending September 30, 2026
- ▪Amazon.com Inc.'s total spending commitments reached $883 billion at the end of September 2026, marking a 36% increase from three months prior and more than double where that figure stood at the same point in 2025
- ▪Amazon.com Inc. reported a larger-than-expected increase in capital expenditures in its third-quarter financial results disclosed on October 29, 2026
Funding strategies of technology rivals
- ▪Alphabet Inc. is raising $80 billion by selling shares
- ▪Technology rivals of Amazon.com Inc. have funded artificial intelligence data centers by partnering with investment groups and leasing graphics processing units purchased by third-party entities
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