Microsoft Raises $25 Billion for AI Infrastructure Expansion

Microsoft raised $25 billion through a 10-tranche US investment-grade bond offering, marking its first major debt issuance of this type since 2017. The sale, which priced on October 29 and is scheduled to close on November 4, 2026, attracted approximately $115 billion in investor orders, representing 4.6 times the available allotment. The bonds feature maturities ranging from 2028 to 2066 with interest rates reaching up to 6.35%.

The company intends to use the proceeds for general corporate purposes, including working capital, acquisitions, debt repayment, and significant capital expenditures to expand AI data centers, servers, and cloud infrastructure for its Azure platform. Microsoft projects its 2026 capital expenditure to be between $170 billion and $190 billion, as Chief Financial Officer Amy Hood stated that demand for AI infrastructure continues to exceed supply.

Parallel to this fundraising, Microsoft launched a Voluntary Exit Offer on October 26 for approximately 60,000 employees at level 70 and below in the United States, United Kingdom, Canada, and India. The program targets non-core functions such as HR, Finance, and Xbox, while excluding security and commercial business. The company expects 3,000 or fewer employees to accept the severance packages. Microsoft clarified that the debt issuance is driven by long-term capital deployment for AI rather than liquidity shortages, noting that the fundraising and the employee exit program are separate corporate decisions.