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2026-10-31 00:40:24
Amazon recently launched an $80 billion supplier credit line to support its AI business funding. This supplier financing mechanism allows companies to apply for loans up to $80 billion, using the value of purchased hardware as collateral. This secured credit line can be drawn on by companies between early 2027 and the third quarter of 2028, based on their operational needs. Lending institutions will hold collateral rights over a portion of the purchased assets. Amazon's third-quarter financial report shows that capital expenditures increased more than market expectations, resulting in a free cash outflow of $42.4 billion for the year ending September 30. In recent years, Amazon has continuously increased its investment in AI infrastructure and computing hardware. This financing arrangement will provide a sufficient financial buffer for its subsequent AI-related developments, helping the company balance capital expenditure pace with cash flow pressure.
