Amazon.com Inc. set up supplier financing arrangements that let it borrow up to $80 billion against hardware purchases, according to a quarterly filing released Thursday.
The secured loan facility can be accessed from the beginning of 2027 through the third quarter of 2028. Lenders will receive collateral rights over certain assets bought through the facility. The filing did not specify which assets are included.
Amazon has funded data center construction and chip purchases mainly through cash from its cloud-computing and retail businesses, along with its largest corporate bond sales to date. The source says Amazon had not previously used the creative funding structures that competitors have, such as joint financing with investment groups or leasing chips bought by other entities.
Amazon Web Services Chief Executive Officer Matt Garman said Friday in a Bloomberg Television interview: "When we see such a really large opportunity in front of us, we're looking for ways to also responsibly fund that so that we can go as big as possible for our customers."
Amazon reported a larger-than-expected increase in capital spending for the third quarter. That spending produced a free cash outflow of $42.4 billion for the year ended Sept. 30. Shares fell about 2% at midday in New York on Friday.
Total spending commitments, which include debt, interest, leases not yet commenced, and obligations to acquire property and equipment, reached $883 billion at the end of September. That is a 36% increase from three months earlier and more than double the figure from the same period in 2025.