AMD Plans $5 Billion Bond Sale to Fund AI Expansion

Advanced Micro Devices Inc. is planning to raise up to $5 billion through an investment-grade bond sale, which would be the largest in the company's history. The offering is structured in four tranches with maturities ranging from three to 10 years.

AMD intends to use the proceeds for general corporate expenses, including the repayment of $875 million in bonds maturing next month. This debt issuance comes as the company increases spending to meet AI-driven demand for computing capacity. This financial move follows new agreements with Microsoft Corp. and Anthropic PBC to broaden the use of AMD AI chips.

As part of its partnership with Anthropic, the chatbot maker, AMD has committed to invest up to $5 billion in the company. A consortium of banks, including Barclays Plc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley, and Wells Fargo & Co., is managing the bond sale.