Amazon Launches $15 Billion Bond Sale as AI Infrastructure Spending Surges
Amazon will raise $15 billion through its first U.S. dollar bond offering in three years, Reuters reported on November 17, citing a filing with the SEC. The issuance comes as major technology companies increase spending on infrastructure to support rising demand for artificial intelligence workloads.
According to the filing, Amazon launched a six-part bond sale on Monday. The company said proceeds may be used for acquisitions, capital expenditures, or share buybacks. Bloomberg News reported that demand for the bonds reached roughly $80 billion at its peak.
Bloomberg also reported that pricing for the longest portion of the offering, a 40-year bond, tightened to 0.85 percentage point above U.S. Treasuries after initial discussions at 1.15 percentage point.
The sale follows a wave of debt issuance across the technology sector. Last month, Meta Platforms announced plans for a bond sale of up to $30 billion. Oracle is also reportedly preparing to raise $15 billion in the debt market.
Morgan Stanley estimates that major technology firms, including Meta, Amazon, and Alphabet, are expected to spend about $400 billion on AI infrastructure this year. Amazon’s own capital expenditure is projected to reach about $125 billion in 2025, with further increases expected the following year.
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