Amazon secures $17.5 billion loan facility amid AI-driven capex ramp

June 10 (Reuters) - Amazon.com ‌has secured ​a $17.5 ​billion loan from lenders including Citibank, the tech giant said, as it ramps ‌up spending on AI infrastructure.

The lenders also ⁠include BofA Securities, JPMorgan Chase, HSBC and Wells Fargo, ‌Amazon said in a ‌filing dated June 8, adding that the funding is for general corporate purposes.

Big Tech companies, ​including Alphabet and Meta, have signaled that spending on AI would not slow down, ⁠with combined outlays now set to surpass $700 billion this year, up ​from about $600 billion previously.

To finance their AI build-outs, some of the world's largest technology ​companies are tapping debt ‌markets and raising equity, marking a shift from relying mainly on cash reserves ⁠to fund expansion.

Meta in October filed for its largest bond offering ever of up to $30 billion, ⁠while Alphabet last month disclosed its plans to sell Japanese ​yen-denominated bonds for the first time.

Amazon's latest agreement is for a delayed draw term loan facility, which means ‌it can withdraw amounts as needed instead of receiving the entire amount upfront.

Earlier ‌this week, Amazon filed for a five-part ⁠debt offering in Canada ‌for up to ​C$14 billion.

(Reporting by Deborah Sophia and Anhata Rooprai in Bengaluru; Editing by Shilpi ‌Majumdar)

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