Fresh off bond sale, Amazon borrows $17.5 billion from banks as AI spending continues
Key takeaways
- Companies are burning through exorbitant sums of money to keep pace in the AI arms race.
- The banks behind the loan reportedly include Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and Bof A Securities.
- The loan comes just two days after it was reported that Amazon would also raise $14 billion in a Canadian bond sale, bringing its total new financing to roughly $31.5 billion in the span of roughly 48 hours.
Why this matters: a development in AI with implications for how people work, create, and decide.
Companies are burning through exorbitant sums of money to keep pace in the AI arms race. Debt is climbing. Amidst this flurry of activity, Amazon has signed a deal to borrow some $17.5 billion from a number of financial lenders, according to Bloomberg.
The banks behind the loan reportedly include Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and Bof A Securities. The deal has been characterized as a delayed draw term loan, 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.
The loan comes just two days after it was reported that Amazon would also raise $14 billion in a Canadian bond sale, bringing its total new financing to roughly $31.5 billion in the span of roughly 48 hours.