Amazon has established supplier financing arrangements under which it can borrow up to $80 billion against the value of hardware it purchases, according to a disclosure in its third quarter filing reported on October 30. The secured facility can be drawn at Amazon’s discretion from early 2027 through the third quarter of 2028, and lenders will hold collateral rights over some of the assets bought with the funds. Each borrowing carries a variable interest rate and must be repaid within five years, according to reporting on the filing.
The structure is a change in how the largest AI builders fund themselves. Amazon has historically relied on retail and cloud cash flow and on corporate bond sales. Borrowing against the equipment itself, with the hardware as collateral, is the model more often associated with newer data center developers and chip leasing structures, and its adoption by Amazon shows how large the hardware bill has become.
The filing context is stark. Amazon’s aggregate future commitments, covering debt and interest, uncommenced leases and equipment purchase obligations, reached $883 billion at the end of September, up 36 percent in one quarter. Free cash flow for the year to September 30 was an outflow of $42.4 billion, and the company expects capital spending of about $220 billion in 2026, with a further significant increase signalled for 2027.
No draw has been made under the facility yet. What has changed is the funding toolkit: if AI hardware spending keeps rising, up to $80 billion of it can now be financed against the assets themselves rather than against Amazon’s general credit.