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Amazon Eyes $25 Billion Debt Raise For AI Investments

Amazon, Alphabet, Microsoft and Meta are collectively expected to spend more than $700 billion on AI this year.

Photo by Marques Thomas / Unsplash

Amazon is seeking to raise at least $25 billion through a U.S. dollar bond sale as it accelerates spending on artificial intelligence infrastructure, reported by Bloomberg News and cited by Reuters.

According to the report, the final size of the offering could increase depending on investor demand. Amazon has filed for an eight-part offering of floating and fixed-rate senior unsecured notes with maturities ranging from three to 40 years.

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An Amazon spokesperson said the proceeds will support general corporate purposes, including future capital expenditures and repayment of maturing debt. Reuters said it could not independently verify the reported fundraising target.

The report said major technology companies are increasingly turning to debt and equity markets to finance expensive AI investments. Amazon, Alphabet, Microsoft and Meta are collectively expected to spend more than $700 billion on AI this year.

Barclays, Goldman Sachs, JPMorgan and Morgan Stanley are serving as joint book-running managers for the bond offering, according to Amazon's regulatory filing.

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