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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting the intense race among tech giants to dominate advanced computing capabilities, Amazon has entered into a $17.5 billion senior unsecured term loan facility with Citibank and other lenders. This credit arrangement is designed to fund the company's aggressive expansion of its AI infrastructure. With this latest deal, Amazon's total external financing raised this year has surpassed the $80 billion mark.
This financing surge comes as Big Tech balance sheets face pressure to fund massive data center build-outs; for context, Microsoft increased its capital expenditure by 79% year-over-year to $14 billion in its latest quarter per earnings reports, while Alphabet allocated approximately $12 billion for similar purposes. Per market data, investors are closely monitoring whether these heavy investments will yield tangible returns in the medium term as Amazon continues to balance its debt profile between bond issuances and bank loans.
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Sign InAt the close on June 12, 2026, AMZN shares stood at $238.55, having reached a session high of $243.36. Traders are looking ahead to further commentary from Fed officials and upcoming economic data to gauge future corporate borrowing costs, while capital expenditure guidance in the next quarterly earnings release remains the primary catalyst for the stock's valuation.