Amazon raises $25 billion in largest bond sale of year to accelerate AI infrastructure push

Amazon returns to the bond market for at least $25bn to fund its AI build-out

The eight-part sale is Amazon's biggest of the year, and the company has told bankers it does not plan to borrow again in 2026. Amazon has gone back to the debt markets for at least $25bn, its largest bond sale of the year and the clearest sign yet of how much the company is prepared to borrow to keep pace in the artificial intelligence race. The offering is split across eight tranches with maturities running from 2029 out to 2066. The money is earmarked for the thing swallowing cash across the whole industry: data centres, custom silicon, and the physical scaffolding that AI now demands. It follows a pattern set by Amazon's record Canadian dollar bond earlier in the year, part of a borrowing run that has now topped $70bn since the start of 2025 across dollar, euro and Swiss franc deals. Much of that spending flows through Amazon Web Services, where the company is racing to add capacity for customers training and running large models. A growing share is also going into its own Trainium chips, which Amazon has pitched as a cheaper alternative to buying Nvidia hardware at scale. Investor demand was there, though it cooled as the terms firmed up. Orders peaked at around $62bn before the banks managing the sale trimmed the spread on offer, leaving the final book at roughly $41bn, or about 1.6 times the size of the deal. Amazon told the underwriters it does not plan to issue any more debt this year, a detail that reads as reassurance to a market watching the sector stack on leverage. It is the kind of guidance that matters when investors are trying to gauge how much more paper is coming. The borrowing has an obvious cause on the balance sheet. Amazon has guided to roughly $200bn in capital spending for 2026, the most of any hyperscaler, and that bill has already compressed its free cash flow to a fraction of what it was a year earlier. The company is far from alone in reaching for debt to plug the gap. The four largest US tech firms have collectively guided to more than $650bn in AI capex this year, a figure that increasingly outstrips what even their vast operating cash flows can cover. Not everyone reads the appetite as bottomless. Analysts noted that demand for this sale looked muted next to some earlier offerings, a hint that bond buyers are turning choosier as AI-linked debt floods the market. That caution is showing up elsewhere in the financing chain. Deals such as Cipher's junk bonds, raised to build an Amazon data centre in Texas, are testing how far investors will stretch to fund the boom at the riskier end. Amazon structured the offering as a mix of fixed and floating-rate notes, giving it flexibility across a curve that reaches four decades out. The longest tranche, due in 2066, is the sort of ultra-long paper usually reserved for the most creditworthy names. Amazon can still borrow at those terms because it remains one of the highest-rated corporate issuers in the market, which keeps its funding costs low even as the totals climb. That gap between what Amazon pays and what smaller rivals pay is now part of the story of who can afford to keep building. The sale also lands in a market already thick with AI-linked paper from Meta, Oracle and a string of data-centre developers. Each new deal tests the same question, which is how much more debt investors will absorb before they start demanding a higher price for it. For now the sale hands Amazon a fresh cushion as it heads into a stretch of heavy spending with no let-up in sight. Whether the market stays this willing on the next trip is the question now hanging over the entire sector.

Amazon raises $25 billion bond sale for AI infrastructure

Amazon $AMZN filed plans Tuesday for an eight-part bond sale targeting at least $25 billion, as the company continues to fund a large-scale artificial intelligence infrastructure buildout. Bloomberg reported that investor demand may push the final figure higher than the $25 billion minimum. Amazon also told its underwriters it does not plan to issue additional debt this year. A company spokesperson told CNBC that any money raised is earmarked for broad corporate needs, a category that can encompass new investments, capital expenditures down the road, and paying off existing debt. "We regularly evaluate our operating plan and make financing decisions, like issuing bonds, accordingly," the spokesperson said. According to Amazon's SEC filing, the deal's underwriting duties are shared among Barclays, Goldman Sachs $GS, J.P. Morgan, and Morgan Stanley $MS. Maturities on the notes span from three years out to 40 years, Bloomberg reported, with that outlet also being the first to put a dollar figure on the deal, citing people it did not identify by name. The new offering follows a substantial debt-raising push earlier in 2026. Amazon raised roughly $54 billion in bonds in the U.S. and Europe earlier this year and an additional $10 billion in Canada in June. An 11-part offering the company brought to market in March drew so much investor interest it was heavily oversubscribed, ultimately raising $37 billion. This year's capital expenditure budget is set at $200 billion, a sharp increase from the $131 billion Amazon spent in 2025, with data centers, chips, and supporting hardware accounting for the bulk of those outlays. CEO Andy Jassy has pushed back against skeptical investors by framing the AI moment as a "once-in-a-lifetime opportunity" that justifies the scale of spending. The bond sale is part of a broader turn by major technology companies toward debt and equity markets to finance AI spending. Combined AI outlays from Amazon, Alphabet $GOOGL, Microsoft $MSFT, and Meta $META are on track to exceed $700 billion in 2026, according to Reuters. Elsewhere in Big Tech, Meta tapped investment-grade bond markets for $25 billion this year after closing a $30 billion deal last October, and Alphabet separately secured roughly $85 billion by expanding an equity offering last month.

Amazon aims to raise $25 billion from bond sale, Bloomberg News reports

Amazon plans to raise at least twenty-five billion dollars through a new bond sale. This move aims to fund the company's significant investments in artificial intelligence technology. Other major tech firms are also tapping debt markets for similar costly AI infrastructure build-outs. These companies are expected to spend over seven hundred billion dollars on AI this year. The offering size may increase based on investor demand and market conditions. Amazon. com is looking to raise at least $25 billion through a U.S. dollar bond sale, Bloomberg News reported on Tuesday, in the company's latest push to fund its hefty AI investments. Tech companies have been tapping debt markets and launching equity sales to fund their ⁠costly ⁠AI infrastructure build-out. Big Tech, including Amazon, Alphabet, Microsoft and Meta, are expected to spend more than $700 billion on AI this year. The size of Amazon's offering could increase depending on investor demand, Bloomberg said, citing people familiar with the matter. Amazon did not immediately respond to a ⁠Reuters request for comment. A regulatory filing by the tech giant from earlier in the day showed it ⁠has filed for an eight-part offering of floating and fixed-rate notes. Turning to debt and equity offerings for capital marks a shift for the Silicon Valley giants, who have typically relied on their cash reserves to fund their investments. The recent debt offerings have seen strong investor appetite. Google-parent Alphabet last month said it would raise some $85 billion in an upsized equity sale. Facebook-parent Meta earlier this year sold investment-grade bonds worth $25 billion, ⁠following a $30 billion bond sale in October, which was the company's biggest ever. Amazon said in its exchange filing that Barclays, Goldman Sachs, J.P. Morgan and Morgan Stanley are the joint book-running managers for the offering. The company had in March targeted a $37 billion raise in a heavily oversubscribed 11-part bond sale.