Amazon launches $15b bond sale to fund AI infrastructure growth

• Proceeds from the offering may be used for a range of corporate purposes, including acquisitions, capital expenditures, and share buybacks.

Amazon is set to raise $15 billion through its first US dollar bond offering in three years, as the tech giant ramps up investments in artificial intelligence (AI) infrastructure.

The multi-part bond deal, disclosed in a Securities and Exchange Commission filing on Monday, is part of a growing trend among major technology companies turning to debt markets to finance large-scale expansions.

Investor demand for Amazon’s bond peaked at approximately $80 billion, underscoring robust appetite for tech-related debt. Notably, the yield spread on the 40-year tranche narrowed significantly, reflecting strong investor confidence.

Amazon’s capital expenditure to rise

Proceeds from the offering may be used for a range of corporate purposes, including acquisitions, capital expenditures, and share buybacks.

The move follows similar financing strategies by other industry leaders. Last month, Meta Platforms launched it’s largest-ever bond sale, targeting up to $30 billion, while Oracle is reportedly planning a $15 billion bond issuance.

Analysts at Morgan Stanley estimate that leading tech firms—including Amazon, Meta, and Alphabet—are on track to spend as much as $400 billion this year alone on AI infrastructure.

Amazon’s capital expenditures are projected to reach about $125 billion in 2025, with expectations for further increases next year.

The company recently inked a $38 billion partnership with OpenAI, a move that significantly bolsters its cloud business amid intensifying competition from Microsoft and Google.