Key facts
- Amazon secured a $17.5 billion delayed draw term loan credit facility.
- The facility was arranged with Citibank and other lenders.
- This financing supports Amazon's increasing capital expenditures driven by AI demand.
- Amazon has raised over $80 billion in external financing this year.
- Amazon's capital expenditures are projected to nearly double from FY24 by FY26.
Amazon has secured a $17.5 billion delayed draw term loan credit facility with Citibank and other lenders, signaling its aggressive investment in artificial intelligence infrastructure. This move comes as the tech giant has raised over $80 billion in external financing this year alone, with no indication of slowing down.
Big Tech firms, including Amazon, Microsoft, Meta, and Google, are significantly increasing their capital expenditures on AI chips, servers, and data centers. Microsoft led spending with nearly $35 billion in the first quarter of its fiscal year, while Amazon recently opened an $11 billion data center in Indiana and plans to spend $5 billion on data centers in South Korea.
Analysts are closely watching which companies can translate these substantial investments into tangible AI returns. Meta, in particular, faces pressure to demonstrate the value of its spending spree. Amazon's capital expenditures are projected to nearly double from fiscal year 2024 levels by fiscal year 2026, with an estimated $150 billion planned for AI and data centers by 2026.