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

Amazon has secured a $17.5 billion delayed draw term loan from a group of banks including Citigroup, JPMorgan Chase, and Wells Fargo, just two days after raising $14 billion in a Canadian bond sale. The new financing brings Amazon's total debt raised to roughly $31.5 billion in 48 hours, as the company continues to fund massive AI infrastructure spending. The loan provides Amazon flexibility to draw funds on its own timeline for general corporate purposes, amid a broader trend of tech giants borrowing heavily to finance AI buildouts.

Companies are burning through exorbitant sums of money to keep pace in the AI arms race. Debt is climbing https://www.youtube.com/watch?v=mkh0Rc Ikqs . Amidst this flurry of activity, Amazon has signed a deal to borrow some $17.5 billion from a number of financial lenders, according to Bloomberg https://www.bloomberg.com/news/articles/2026-06-10/amazon-inks-17-5-billion-loan-in-financing-led-by-citigroup?taid=6a29703f3ef24f000105c6be&utm campaign=trueanthem&utm content=business&utm medium=social&utm source=twitter . The banks behind the loan reportedly https://www.reuters.com/business/retail-consumer/amazon-secures-175-billion-loan-facility-amid-ai-driven-capex-ramp-2026-06-10/ include Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and BofA Securities. The deal has been characterized as a delayed draw term loan https://www.proskauer.com/alert/private-credit-explained-delayed-draw-term-loans , meaning Amazon can draw down the funds on its own timeline rather than taking the full sum upfront, giving it flexibility in how and when the money gets deployed. The loan comes just two days after it was reported that Amazon would also raise $14 billion in a Canadian bond sale https://financialpost.com/technology/amazon-raise-7-billion-canada-bond-sale , bringing its total new financing to roughly $31.5 billion in the span of roughly 48 hours. It’s not clear exactly how Amazon plans to spend all the new money. Reuters notes that https://www.reuters.com/business/retail-consumer/amazon-secures-175-billion-loan-facility-amid-ai-driven-capex-ramp-2026-06-10/ the new loan will be used for “general corporate purposes.” TechCrunch has reached out to Amazon for more information. Amazon is hardly alone. To fund new AI infrastructure like chips and data centers, companies are leveraging historic capex. Increasingly, companies are borrowing money https://www.reuters.com/business/media-telecom/tech-companies-tap-debt-markets-fund-ai-cloud-expansion-2026-06-02/ to fund their massive AI buildouts. The question investors and analysts are increasingly asking isn’t whether this spending is necessary — it’s whether the returns will ever justify it. The scale of the borrowing is striking even by Silicon Valley standards. About a week ago, Google parent company Alphabet said that it planned to raise $80 billion https://techcrunch.com/2026/06/01/alphabet-plans-to-raise-80-billion-to-pay-for-ai-buildout/? thumbnail id=2960152 through a stock sale designed to help “fund its investments in a balanced way while retaining a healthy balance sheet.” Meta has also announced plans to raise $30 billion in a bond sale https://www.reuters.com/business/meta-seeks-least-25-billion-bond-offering-bloomberg-reports-2025-10-30/ — its largest ever.