Fresh off bond sale, Amazon borrows $17.5B from banks as AI spending continues

Amazon has arranged a $17.5 billion delayed-draw term loan from major banks including Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and BofA Securities. Combined with a reported $14 billion Canadian bond sale, the company has lined up about $31.5 billion in new financing in roughly two days, though the funds are officially for general corporate purposes.

The borrowing underscores how the AI infrastructure race is pushing even cash-rich tech giants toward large-scale debt financing for chips, data centers, and related capacity. Investors are increasingly focused on whether these massive capital outlays can generate returns that justify the leverage, especially as Alphabet and Meta pursue similarly large fundraising plans.

Companies are burning through exorbitant sums of money to keep pace in the AI arms race. Debt is climbing.