- Amazon will be able to access up to $80.000 billion in hardware-backed financing between 2027 and the third quarter of 2028.
- The lenders would have guarantees on some of the equipment acquired, although it is not specified which specific assets are included in the transaction.
- The company recorded a free cash outflow of $42.400 billion and raised its total spending commitments to $883.000 billion.
- The formula adds to its usual sources to support data centers and AI chips in a context of heavy investment.
Amazon has structured a financing mechanism that would allow it to obtain loans of up to $80.000 billion , using the hardware it acquires as collateral. This capacity could be used at the company's discretion between early 2027 and the third quarter of 2028, and lenders would have security interests in some of the purchased equipment.
The transaction is part of an effort to expand its artificial intelligence infrastructure. To date, the company has financed data centers and chips with cash generated from cloud and retail operations , in addition to issuing corporate bonds. The quarterly report does not specify which assets would be allocated to this line of credit, and a spokesperson declined to comment.
A different way to finance the AI race
The company had largely avoided the more creative schemes employed by some competitors, such as sharing the cost of new data centers with investment groups or leasing chips purchased by another entity. Many of these industry moves revolve around Nvidia processors , which handle a significant portion of AI workloads and are typically one of the largest expenses when building new facilities. In this case, the financing is tied to hardware acquired by Amazon itself, although the specific equipment used for this purpose is not detailed.
The document also fails to identify the assets that would be covered by the guarantee or offer further explanation of the mechanism's scope. What is clear, however, is that the formula introduces a new financing tool linked to equipment, as opposed to the more traditional methods used until now. This allows the company to maintain the flexibility to purchase hardware without relying solely on cash flow generated by its business operations.
The investment effort is reflected in the cash flow.
Third-quarter results reflected higher-than-expected capital expenditures. The company reported a free cash outflow of $42.400 billion in the twelve months ending September 30, and its shares fell by about 2% by midday in New York.
As of the end of September, total spending commitments stood at $883.000 billion , 36% higher than three months earlier and more than double the amount at the same time in 2025. This figure includes debt and interest, leases not yet commenced, obligations to acquire real estate and equipment, and other items.
Matt Garman, head of Amazon Web Services, indicated that when they see a large opportunity, they look for ways to finance it responsibly to offer the greatest possible capacity to their customers . He also noted that the company collaborates with partners to balance some of those cash flows while experiencing very rapid growth.
What to keep a close eye on
The key will be how much Amazon ultimately utilizes this capacity and how those needs align with its investments and cash flow. For now, the report doesn't clarify which specific assets back the loans or detail the actual use of the credit line. No further details have been revealed regarding the terms of a transaction that could accompany its hardware purchases in the coming years.
The move gives Amazon an additional avenue to finance AI hardware while undertaking a massive investment effort: up to $80.000 billion backed by equipment, a free cash outflow of $42.400 billion, and spending commitments of $883.000 billion. Its future performance will depend on how much it uses this line of credit and how it manages its regular funding sources, though the specific assets that would be pledged as collateral are not yet known.