Amazon has secured a $17.5 billion delayed-draw term loan led by Citigroup, part of an aggressive borrowing spree to fund its $200 billion AI capital expenditure plan for 2026. The loan follows a record C$14 billion Canadian dollar bond sale and bond issuances in euros, US dollars, and Swiss francs. Amazon's total debt has surged 50% year-over-year to over $225 billion. The funds are earmarked for data centres, chips, and equity stakes in AI companies including OpenAI ($50B committed) and Anthropic ($10B invested). Analysts note the cheap borrowing rates reflect market confidence in Amazon, but question whether AI returns will materialize fast enough to justify the rapid debt accumulation.
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