Amazon has arranged a supplier financing facility of up to US$80 billion, secured against certain purchased assets, as it looks to fund heavy spending on AI infrastructure.

In a quarterly filing after earnings, Amazon said it can draw on the facility from early 2027 through the third quarter of 2028. Lenders will have collateral rights over some assets tied to the facility, though the filing did not specify which assets.

Amazon also reported a larger-than-expected rise in capital spending. That contributed to a US$42.4 billion free cash outflow in the year ended September 30.

Amazon Web Services chief Matt Garman said the company is working with partners to balance cash flows.

The Financial Accounting Standards Board’s Accounting Standards Update 2022-04 requires disclosures of key terms and outstanding obligations for covered supplier finance programs. The available information does not establish whether Amazon’s facility falls within the rule’s scope.

🔗 Source: Bloomberg

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