US Edition
AI's Coming Trillion-Dollar Hangover: Amazon Leads Hyperscalers Back to the Debt Well
Amazon's $37 billion U.S. bond sale, part of a nearly $50 billion cross-Atlantic deal, supports major AI and data center investments amid strong investor demand.
- On Tuesday, Amazon.com Inc. raised $37 billion through an 11-part U.S. dollar bond sale, with an eight-part euro debut planned for Wednesday targeting at least €10 billion .
- Amazon guided for $200 billion in capital expenditures this year to build data centers, chips and cloud capacity, forcing a shift from internal funding to debt-financed expansion as AI infrastructure costs soared.
- The U.S. portion drew about $126 billion of orders, one of the largest corporate books ever, prompting an upsizing from initial guidance of $25 billion to $30 billion.
- Adding $37 billion to $42 billion in new bonds would push Amazon's long-term debt toward $100 billion-plus, though analysts characterized the raise as strategic flexibility rather than financial distress.
- The deal ranks among the fourth-largest U.S. corporate bond sales and followed a restart in global issuance after geopolitical cues eased, with at least €26.9 billion priced in Europe on Wednesday.
25 Articles
25 Articles
After the huge US bond, the Group makes its debut on the European bond market with 14.5 billion euros. The large tech providers currently need enormous sums for investments.
Times of India
The Economic TimesAmazon targeting $37 billion to $42 billion in bond sale: Report
Amazon is planning a massive bond sale, aiming for $37 billion to $42 billion. This significant fundraising effort is to support its extensive investments in artificial intelligence infrastructure. The company is offering bonds in both dollars and euros. This move follows similar large bond issuances by other major tech companies. Investors are showing strong interest in these high-grade corporate debts.
Amazon's bond issuance still lags behind Oracle's $129 billion in bond issuance requests last month, but surpasses Meta Platforms' $125 billion in October.
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