Amazon is looking to pull in at least $25 billion through a bond sale in U.S. dollars, Bloomberg News reported Tuesday, as the company continues pouring money into artificial intelligence development.
Across the tech industry, major companies have been turning to debt markets and stock sales to pay for the enormous cost of building out AI infrastructure. Amazon, along with Alphabet, Microsoft, and Meta, are among the Big Tech firms collectively expected to pour more than $700 billion into AI spending this year.
Bloomberg, citing sources with knowledge of the situation, noted that the final size of Amazon’s bond offering could climb higher based on investor interest. Amazon had not responded to a request for comment at the time of the report.
An earlier regulatory filing from the company revealed that Amazon has submitted paperwork for an eight-part offering consisting of both floating-rate and fixed-rate notes.
This turn toward bond and equity markets represents a notable change for Silicon Valley’s biggest players, who have historically relied on their own cash reserves to bankroll major investments. Recent debt offerings from tech companies have attracted strong demand from investors.
Last month, Alphabet — the parent company of Google — announced it would raise approximately $85 billion through an expanded equity sale. Earlier this year, Meta, which owns Facebook, sold $25 billion in investment-grade bonds. That followed a $30 billion bond sale Meta completed in October, which stood as the company’s largest ever.
According to Amazon’s exchange filing, Barclays, Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as the joint book-running managers for the new offering.
Back in March, Amazon completed an 11-part bond sale targeting $37 billion that was heavily oversubscribed by investors.
