Key facts
- Amazon is reportedly seeking to raise at least $25 billion through a U.S. bond sale.
- The funds are intended to support the company's investments in artificial intelligence infrastructure.
- The offering size may increase based on investor demand.
- Other major tech companies like Meta, Alphabet, and Oracle are also raising significant debt for AI and cloud expansion.
- Tech giants' combined spending on AI is projected to exceed $700 billion this year.
Amazon.com is reportedly preparing to raise at least $25 billion through a U.S. bond sale, a move aimed at funding its substantial investments in artificial intelligence infrastructure. The size of the offering could be expanded depending on investor demand, according to Bloomberg News.
The tech giant has filed for an offering of eight-part floating and fixed-rate notes, with maturities up to 50 years. This comes as major technology firms are increasingly turning to debt markets to finance their AI and cloud expansion, a shift from their traditional reliance on cash reserves.
Alphabet, Amazon, Microsoft, and Meta have all signaled that spending on AI will continue unabated, with their combined expenditures expected to surpass $700 billion this year. This increased investment in physical infrastructure for AI has led some analysts, like Bridgewater Associates, to describe the AI boom as entering a "more dangerous phase" due to rising capital needs.
Other tech companies are also actively tapping debt markets. Salesforce recently priced a $25 billion debt offering, while Oracle expects to raise between $45 billion and $50 billion in 2026. Alphabet is planning equity offerings and yen-denominated bonds, and Meta has filed for its largest bond offering ever, up to $30 billion, to finance its AI infrastructure expansion.