The company is establishing a new financing arrangement to cover the costs of the servers and processing chips needed for its artificial intelligence infrastructure. Under the terms of the new supplier loan facility, Amazon can borrow up to $80B, using the hardware it purchases as collateral.
The borrowing capacity will be available from the start of 2027 through Q3 2028. The firm has historically relied on internal cash reserves and bond markets to pay for the expansion of its data centers and chip inventory.