Amazon.com is seeking to raise at least $25 billion through a U.S. dollar bond sale, according to a Bloomberg News report on Tuesday.
The move comes as the company continues to invest heavily in artificial intelligence infrastructure.
Big Tech Turns to Debt Markets for AI Funding
Major technology companies are increasingly using debt and equity markets to fund their expensive AI expansion plans.
Amazon, Alphabet, Microsoft, and Meta are expected to spend more than $700 billion on artificial intelligence this year.
These investments include data centers, chips, cloud infrastructure, and other AI-related capital expenditures.
Amazon Bond Sale Could Grow With Demand
According to Bloomberg, Amazon’s bond offering could become larger if investor demand is strong.
The report cited people familiar with the matter.
A regulatory filing earlier on Tuesday showed that Amazon had filed for an eight-part offering. The deal includes both floating-rate and fixed-rate notes.
Reuters said it could not independently confirm the total size of the raise. Amazon declined to provide additional financial details.
Bonds Range From Three to 40 Years
Amazon is issuing senior unsecured bonds with maturities ranging from three years to 40 years, according to a term sheet seen by Reuters.
An Amazon spokesperson said the proceeds will be used for general corporate purposes.
These may include future capital spending and the repayment of upcoming debt maturities.
Silicon Valley Giants Shift Funding Strategy
The decision to raise money through bond and equity markets marks a shift for large technology companies.
In the past, many Silicon Valley giants relied heavily on their large cash reserves to fund major investments.
However, the scale of AI spending has pushed companies to look for additional sources of capital.
Recent bond offerings from major technology firms have attracted strong investor interest.
Alphabet and Meta Also Raise Capital
Amazon is not alone in tapping capital markets.
Alphabet, Google’s parent company, said last month that it would raise around $85 billion through an upsized equity sale.
Meta, the parent company of Facebook, sold $25 billion of investment-grade bonds earlier this year. That followed a $30 billion bond sale in October, which was the largest in Meta’s history.
Major Banks Manage Amazon Offering
Amazon said in its exchange filing that Barclays, Goldman Sachs, J.P. Morgan, and Morgan Stanley are acting as joint book-running managers for the bond offering.
The latest deal follows Amazon’s March bond sale, when the company targeted a $37 billion raise through an 11-part offering that was heavily oversubscribed.
The new bond sale highlights how aggressively Amazon and other Big Tech firms are funding the next stage of the AI race.
