A confidential source says Amazon will issue an eight-part dollar bond offering managed by major banks, amid reported investor demand peaking at $62 billion.
According to a source familiar with the matter, Amazon.com plans to raise at least $25 billion through a U.S. dollar-denominated bond issue to finance investments in artificial intelligence.
Other technology companies are also tapping debt markets and issuing securities or shares to support AI infrastructure spending. Among them are Alphabet, Microsoft, and Meta, which are expected to spend more than $700 billion on artificial intelligence this year.
The size of the offering could increase depending on investor demand.
Analysts say demand for the new issue reached a peak of $62 billion.
The company’s regulatory filing contemplates an eight-tranche bond issue with floating and fixed rates. The company does not disclose further financial details.
The company is issuing senior unsecured bonds with maturities ranging from three to 40 years, as noted in the document released earlier.
A spokesperson for Amazon said the proceeds from the bond issue will go toward corporate purposes, including future capital expenditures and repayment of planned debt obligations.
The shift to debt and investment financing to raise capital reflects a shift in strategy among large tech companies, which previously relied mainly on their cash reserves. Such debt instrument issuances demonstrate notable investor interest.
Alphabet had previously said it would raise around $85 billion through an increase in the volume of stock sales. Meta earlier this year sold investment-grade bonds totaling about $25 billion, and in October – $30 billion, becoming one of the company’s largest issuances.
The company also noted that Barclays, Goldman Sachs, J.P. Morgan, and Morgan Stanley will serve as joint bookrunners for the issue.
In March, Amazon also discussed the possibility of raising about $37 billion through a multi-tranche bond offering, underscoring activity in the debt-financing market for technology companies.
A Look to the Future
Rising investor demand for debt instruments signals continued financing of AI projects and infrastructure among the leading tech giants.