Amazon has reached an agreement on a new $17.5 billion line of credit, according to regulatory filings, marking the tech giant’s latest aggressive move to bolster its financial reserves amid a historic surge in capital spending driven by artificial intelligence (AI).
The deal, structured as a term loan with deferred drawdown, was led by Citigroup Global Markets and involves a consortium of international lenders including Bank of America, JPMorgan Chase, HSBC and Wells Fargo.
Under the terms, the e-commerce and cloud computing giant will be able to use the debt line incrementally over time, instead of taking the full amount at once, offering financial leverage with greater flexibility.
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The company also took an important step into the less-than-truckload (LTL) freight market this Wednesday. This model allows customers to transport smaller loads without having to hire an entire truck, reducing costs and increasing logistical efficiency.
The service includes same-day pickup, next-day pickup for orders placed before 5pm, and scheduled daily pickups for high-volume customers.
*With information from Dow Jones Newswires
