New York, June 10, 2026, 14:47 EDT
- Amazon shares were at $238.59, off $5.60 from the previous close. Investors took in another financing move linked to its AI build-out.
- The company signed a $17.5 billion senior unsecured delayed-draw term loan facility on June 8.
- Amazon’s loan comes after its C$14 billion Canadian-dollar bond deal, the largest on record. The deals have raised fresh questions about how much outside funding Big Tech is using for AI infrastructure.
Amazon.com Inc. shares dropped Wednesday after the company said it secured a $17.5 billion loan facility, pointing to AI infrastructure plans turning into real money on the books. AMZN was last at $238.59, off around 2.3%, after opening at $243.41. The stock hit a low of $237.96 earlier in the session.
Amazon shares reacted after news broke of a funding deal that isn’t the usual kind. In a Form 8-K, Amazon said it made a senior unsecured delayed-draw term loan agreement with Citibank N.A. acting as administrative agent and lenders. The “delayed draw” structure lets Amazon take the funds at a future date instead of upfront. The lending commitments are set to expire on September 30, 2026, unless the whole amount is borrowed sooner.
Any loan under the facility will come due three years after it’s drawn. The rate depends on a base rate or Term SOFR, plus a margin between 0.625% and 0.875%, linked to Amazon’s credit ratings. SOFR, or the Secured Overnight Financing Rate, tracks the overnight cost of borrowing using U.S. Treasury collateral.
Amazon plans to use the proceeds for general corporate purposes, according to the filing. But the timing turns focus back to Amazon’s AI spending push. Reuters said the banks in the lender group are Citibank, BofA Securities, JPMorgan Chase, HSBC and Wells Fargo. The deal comes as Amazon increases AI infrastructure investments.
Amazon ramped up the pace and size of its funding on Tuesday, issuing C$14 billion, or $10.04 billion, of Canadian-dollar notes in a record corporate bond sale, according to Reuters. The deal includes five different maturities from 2029 through 2056.
Amazon has no problem borrowing, but the focus for shareholders is on AWS demand and whether AI revenue will show up soon enough to cover the spending. In April, Amazon reported trailing 12-month free cash flow dropped to $1.2 billion from $25.9 billion a year earlier. The main reason: a $59.3 billion jump in property and equipment buying, which Amazon said was “primarily” due to AI investments. SEC
AWS remains the main driver for the bull case. Amazon reported AWS revenue up 28% year over year to $37.6 billion in the first quarter. AWS operating income hit $14.2 billion, rising from $11.5 billion a year ago. “AWS is growing 28%” on “a very large base,” said Andy Jassy, Amazon president and CEO, in the earnings release. Amazon
Investor reaction to the new debt has been muted, with the company’s growth in focus. Amazon said its chips unit—including Graviton, Trainium and Nitro—now delivers over $20 billion in annualized revenue. The company also singled out fresh AI-driven AWS deals with OpenAI, Anthropic and Meta.
Wall Street had already been sliding on Wednesday, which left AMZN with less cushion. Reuters said U.S. stocks fell as tech losses spread, with the Nasdaq off 1.18% and the S&P 500 dropping 0.84%. Worries about inflation and Middle East tensions weighed on trade.
Big Tech is still pouring money into AI. According to Reuters, Alphabet and Meta are keeping up the pace on AI spending, and they’re tapping debt markets and outside funding more often, not just dipping into cash. Amazon’s new Canadian deal now beats Alphabet’s C$8.5 billion Canadian corporate bond record from last month.
Amazon faces a clear risk: spending on AI can run high before it pays off. If usage, prices or demand fall flat, Amazon could be stuck with bigger debt payments and weak free cash flow. The company flagged interest rates, resource swings, customer demand, AI adoption and the timeline for new infrastructure as factors that could shape its numbers. The fresh loan lets lenders call in unpaid amounts after a default isn’t fixed.
Amazon’s next big test is whether it can keep up enough growth to justify its spending. For the second quarter, Amazon is guiding for net sales between $194 billion and $199 billion and operating income in a $20 billion to $24 billion range, with Prime Day included in those numbers. There’s also a deadline on the calendar: $17.5 billion in loan commitments run out September 30 unless Amazon taps the facility.
