# Amazon and Samsung show 2027's AI hardware is already sold and financed

URL: https://www.thedeepfeed.ai/posts/2026-11-01-2027-is-already-bought-and-financed/
Category: Business
Published: 2026-11-01
Author: the-deep-feed
Tags: infrastructure, amazon, aws, samsung, hbm, memory, financing, capex, debt
Kind: news

> In late October, Samsung said its 2027 HBM supply is already sold out alongside multi-year memory contracts with 10 large customers, and Amazon disclosed an up-to-$80 billion secured loan facility for 2027-28 hardware purchases.

## TL;DR

- Amazon's 10-Q discloses a secured **Loan Facility** of up to about **$80.0 billion** for technology infrastructure purchases, drawable at its discretion from **Q1 2027 through Q3 2028**, with each borrowing maturing in **five years**.
- Amazon's long-term debt rose from **$65.6 billion** at the end of 2025 to **$173.1 billion** on September 30, and its total commitments reached **$883.6 billion**.
- Samsung says 2027 HBM supply negotiations are complete and 'the supply has already been sold out,' and it has signed long-term memory agreements with **10** large customers with talks underway with **10** more.
- Samsung's Q3 capex was **KRW 29 trillion**, and it expects about **KRW 84.4 trillion** for 2026. Its release says AI demand in 2027 'will far exceed the industry supply.'

The AI hardware for 2027 and 2028 is being contracted and financed before it exists. On October 29, Samsung said its 2027 high-bandwidth memory supply is already sold out and that it has signed long-term memory agreements with 10 large customers. A day later, Amazon disclosed a secured loan facility of up to $80 billion for infrastructure purchases running from early 2027 to late 2028.

This publication [reported on October 29](/posts/2026-10-29-hyperscaler-capex-hits-supply/) that the four hyperscalers described supply, not demand, as their limit in the third quarter. Disclosures from the same week show what both sides of the market are doing about it: the supplier is selling forward, and the buyer is arranging the debt to pay for it.

# Amazon borrows against the hardware it will buy

Amazon's [quarterly report](https://www.sec.gov/Archives/edgar/data/1018724/000101872426000040/amzn-20260930.htm), filed with the SEC on October 30, describes "supplier financing arrangements that provide for certain purchases of technology infrastructure assets, including a secured loan facility (the 'Loan Facility') providing for borrowings at our discretion, from Q1 2027 through Q3 2028." Borrowing is "subject to variability based on the extent and timing of purchase orders and pricing terms, of up to approximately $80.0 billion." The loans "accrue interest at variable rates and mature five years from the date of each borrowing," and Amazon "will grant a security interest in certain purchased assets." Amounts drawn will be recorded as long-term debt.

Two features stand out. First, the facility is secured by the equipment it pays for. Second, it is sized and scheduled around purchases that have not happened yet. The window opens in the first quarter of 2027 and closes in the third quarter of 2028.

AWS chief executive Matt Garman described the reasoning to Bloomberg Television, as reported by [TNW](https://thenextweb.com/news/amazon-80b-supplier-loan-facility-ai-hardware): "When we see such a really large opportunity in front of us, we're looking for ways to also responsibly fund that so that we can go as big as possible for our customers."

The facility sits on top of a balance sheet that has already changed this year. The 10-Q shows long-term debt of $173.1 billion on September 30, against $65.6 billion at the end of 2025. New borrowing in 2026 includes a $17.5 billion term loan, drawn in September, and a $25.0 billion bond issue in July. Total commitments, which cover debt, leases not yet commenced, equipment purchase obligations and other items, reached $883.6 billion, including $164.9 billion of leases not yet commenced and $159.6 billion of property and equipment. [Investing.com](https://uk.finance.yahoo.com/news/amazon-sets-80-billion-supplier-172413622.html) reported that the commitments figure was up 36% from three months earlier and that the spending produced a free cash outflow of $42.4 billion for the year to September 30.

# Samsung sells 2027 memory a year early

The supplier side moved the day before. Samsung's [third-quarter release](https://news.samsungsemiconductor.com/global/samsung-electronics-announces-third-quarter-2026-results/) reported revenue of KRW 195.3 trillion and operating profit of KRW 107.4 trillion, and said the memory business "significantly scaled up sales of HBM4." For 2027, it says "increasing AI-driven demand will far exceed the industry supply in comparison with 2026."

On the earnings call, Samsung said the 2027 supply is spoken for. "Negotiations for 2027 supply volumes have been completed at prices in line with our target, taking into account our product competitiveness, and the supply has already been sold out," the company said, as reported by [The Asia Business Daily](https://view.asiae.co.kr/en/article/2026102912145271008). It also described a broader push into multi-year memory contracts: "We have signed memory LTAs with 10 large customers and are negotiating with another 10 key customers," and it is aiming to secure "LTA volumes equivalent to 60-70% of production capacity by 2030." Samsung said HBM4 revenue more than tripled from the previous quarter and now makes up around 60% of its HBM revenue.

Samsung is spending to match. Third-quarter capital expenditure was KRW 29 trillion, up KRW 12.2 trillion from the previous quarter, with KRW 27.2 trillion in the chip division, according to the release. [The Korea Herald](https://www.koreaherald.com/article/10919169) reported planned full-year spending of about KRW 84.4 trillion, KRW 76.8 trillion of it for semiconductors, and quoted the company on its contract chipmaking business: "Capacity expansion at advanced nodes is not keeping pace with demand."

# Contracted before it exists

Put the two disclosures side by side and the shape of 2027 is visible. Samsung's high-bandwidth memory is sold for the year, and its broader memory capacity is increasingly tied up in agreements reaching toward 2030. The largest cloud buyer has pre-arranged up to $80 billion of secured borrowing to pay for equipment purchases across seven quarters starting in 2027.

Multi-year supply agreements and asset-backed borrowing tend to make a build-out less flexible in both directions: commitments are harder for buyers to scale back, and supply that has already been allocated is harder for new demand to get. This publication [reported on October 27](/posts/2026-10-27-chipmakers-underwrite-their-customers/) that chip suppliers were taking on credit risk for their customers. Amazon's facility is the buyer-side counterpart, with the hardware itself as collateral. What the filings do not show is how either side would unwind these commitments if demand in 2028 falls short of what was contracted in 2026.

## Sources

- [SEC — Amazon.com Form 10-Q for the quarter ended Sep 30, 2026 (filed Oct 30, 2026)](https://www.sec.gov/Archives/edgar/data/1018724/000101872426000040/amzn-20260930.htm)
- [TNW — Amazon can now borrow up to $80B against the AI hardware it buys (Oct 30, 2026)](https://thenextweb.com/news/amazon-80b-supplier-loan-facility-ai-hardware)
- [Investing.com via Yahoo Finance UK — Amazon sets up $80 billion supplier financing for AI hardware (Oct 30, 2026)](https://uk.finance.yahoo.com/news/amazon-sets-80-billion-supplier-172413622.html)
- [Samsung Semiconductor Newsroom — Samsung Electronics Announces Third Quarter 2026 Results (Oct 29, 2026)](https://news.samsungsemiconductor.com/global/samsung-electronics-announces-third-quarter-2026-results/)
- [The Korea Herald — Samsung roars back in AI chip race with record W107tr profit (Oct 29, 2026)](https://www.koreaherald.com/article/10919169)
- [The Asia Business Daily — Samsung: HBM4 revenue more than triples, next year's supply sold out (Oct 29, 2026)](https://view.asiae.co.kr/en/article/2026102912145271008)

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