Amazon Raises $15 Billion in First US Bond Sale Since 2022
Amazon raised $15 billion through an oversubscribed bond offering to fund artificial intelligence infrastructure, data centers, and corporate operations.
Amazon.com Inc. raised $15 billion through a six-part U.S. dollar bond sale, marking its first return to the U.S. bond market since 2022. Although the company initially sought approximately $12 billion, the offering was heavily oversubscribed, attracting roughly $80 billion in investor demand and surpassing initial expectations by $3 billion. The issuance included a 40-year note and was managed by Goldman Sachs, JPMorgan Chase, and Morgan Stanley.
The company intends to use the proceeds for general corporate purposes, including the expansion of data centers, procurement of AI chips, acquisitions, share buybacks, and the settlement of upcoming debt maturities. This funding supports Amazon's broader AI strategy, which includes a $38 billion deal with OpenAI to provide Nvidia graphics processing units for its cloud unit. Amazon's total capital expenditure is expected to reach roughly $125 billion in 2025.
This move follows a trend of massive debt issuance among hyperscalers to scale AI capabilities. Other firms include Meta Platforms, which announced a $30 billion sale, and Alphabet, which issued $25 billion. Morgan Stanley estimates that leading tech companies will spend a combined $400 billion on AI infrastructure this year. While the news initially caused shares to slide and credit default swaps to widen, markets rebounded after Saba Capital Management sold credit derivatives to lenders, signaling confidence in the credit stability of major tech firms.
