Amazon (AMZN.O) plans to raise $15 billion through its first U.S. dollar bond offering in three years, according to a filing with the Securities and Exchange Commission on Monday, as major tech firms ramp up investments in artificial intelligence. The six-part bond sale could fund a variety of initiatives, including acquisitions, capital expenditures, and share buybacks, highlighting Amazon’s aggressive expansion in AI and cloud infrastructure.
Demand for the bond was strong, with Bloomberg News reporting peak orders of approximately $80 billion. Pricing for the longest portion of the deal, a 40-year bond, tightened to 0.85 percentage points above Treasuries, down from an initial 1.15 percentage points. The offering comes amid a wave of similar debt sales by other tech giants: Meta Platforms recently announced a $30 billion bond sale, and Oracle is reportedly seeking to raise $15 billion.
Tech firms including Amazon, Meta, and Alphabet are collectively expected to spend $400 billion on AI infrastructure in 2025, according to Morgan Stanley estimates. Amazon alone is forecasting capital expenditures of around $125 billion this year and a similar or higher amount next year. The company recently struck a $38 billion deal with OpenAI, reinforcing its cloud computing capabilities after losing ground to rivals Microsoft and Google.
The surge in borrowing reflects the industry’s recognition that large-scale AI development requires massive infrastructure investments, from data centers to specialized hardware, and underscores the broader trend of tech firms leveraging debt markets to fund growth in cutting-edge technology.
