{"id":69421,"date":"2026-06-10T20:38:07","date_gmt":"2026-06-10T20:38:07","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/69421\/"},"modified":"2026-06-10T20:38:07","modified_gmt":"2026-06-10T20:38:07","slug":"fresh-off-bond-sale-amazon-borrows-17-5b-from-banks-as-ai-spending-continues","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/69421\/","title":{"rendered":"Fresh off bond sale, Amazon borrows $17.5B from banks as AI spending continues"},"content":{"rendered":"<p id=\"speakable-summary\" class=\"wp-block-paragraph\">Companies are burning through exorbitant sums of money to keep pace in the AI arms race. <a href=\"https:\/\/www.youtube.com\/watch?v=mkh0Rc_Ikqs\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Debt is climbing<\/a>. Amidst this flurry of activity, Amazon has signed a deal to borrow some $17.5 billion from a number of financial lenders, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-06-10\/amazon-inks-17-5-billion-loan-in-financing-led-by-citigroup?taid=6a29703f3ef24f000105c6be&amp;utm_campaign=trueanthem&amp;utm_content=business&amp;utm_medium=social&amp;utm_source=twitter\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">according to Bloomberg<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">The banks behind the loan <a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/amazon-secures-175-billion-loan-facility-amid-ai-driven-capex-ramp-2026-06-10\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">reportedly<\/a> include Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and BofA Securities. The deal has been characterized as a <a href=\"https:\/\/www.proskauer.com\/alert\/private-credit-explained-delayed-draw-term-loans\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">delayed draw term loan<\/a>, 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.<\/p>\n<p class=\"wp-block-paragraph\">The loan comes just two days after it was reported that Amazon would also <a href=\"https:\/\/financialpost.com\/technology\/amazon-raise-7-billion-canada-bond-sale\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">raise $14 billion in a Canadian bond sale<\/a>, bringing its total new financing to roughly $31.5 billion in the span of roughly 48 hours.<\/p>\n<p class=\"wp-block-paragraph\">It\u2019s not clear exactly how Amazon plans to spend all the new money. Reuters <a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/amazon-secures-175-billion-loan-facility-amid-ai-driven-capex-ramp-2026-06-10\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">notes that<\/a> the new loan will be used for \u201cgeneral corporate purposes.\u201d TechCrunch has reached out to Amazon for more information.<\/p>\n<p class=\"wp-block-paragraph\">Amazon is hardly alone. To fund new AI infrastructure like chips and data centers, companies are leveraging historic capex. Increasingly, companies <a href=\"https:\/\/www.reuters.com\/business\/media-telecom\/tech-companies-tap-debt-markets-fund-ai-cloud-expansion-2026-06-02\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">are borrowing money<\/a> to fund their massive AI buildouts. The question investors and analysts are increasingly asking isn\u2019t whether this spending is necessary \u2014 it\u2019s whether the returns will ever justify it.<\/p>\n<p class=\"wp-block-paragraph\">The scale of the borrowing is striking even by Silicon Valley standards. About a week ago, Google parent company Alphabet said that it <a href=\"https:\/\/techcrunch.com\/2026\/06\/01\/alphabet-plans-to-raise-80-billion-to-pay-for-ai-buildout\/?_thumbnail_id=2960152\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">planned to raise $80 billion<\/a> through a stock sale designed to help \u201cfund its investments in a balanced way while retaining a healthy balance sheet.\u201d Meta has also announced plans to <a href=\"https:\/\/www.reuters.com\/business\/meta-seeks-least-25-billion-bond-offering-bloomberg-reports-2025-10-30\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">raise $30 billion in a bond sale<\/a> \u2014 its largest ever.<\/p>\n","protected":false},"excerpt":{"rendered":"Companies are burning through exorbitant sums of money to keep pace in the AI arms race. Debt is&hellip;\n","protected":false},"author":2,"featured_media":69422,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[24,321,25,2701,2195],"class_list":["post-69421","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ai","tag-ai","tag-amazon","tag-artificial-intelligence","tag-citigroup","tag-in-brief"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/69421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=69421"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/69421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/69422"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=69421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=69421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=69421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}