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Microsoft Turns To Bond Market To Fund Expanding AI Infrastructure

Wells Fargo, JPMorgan Chase and UBS Group are managing the offering, which is reportedly divided into 10 tranches with maturities ranging from two to 40 years.

Microsoft Plans $25 Billion US Bond Sale Amid Rising AI Costs. Pic via(@business)

Microsoft is planning to raise at least $25 billion through its first US investment-grade bond sale in more than nine years, Bloomberg News reported on Thursday, citing people familiar with the matter.

The proposed offering comes as the company increases spending on artificial intelligence infrastructure. Microsoft reported spending $45.2 billion on data centres and equipment over the previous three months, putting pressure on cash flow.

Wells Fargo, JPMorgan Chase and UBS Group are managing the offering, which is reportedly divided into 10 tranches with maturities ranging from two to 40 years.

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Microsoft’s AAA credit rating, held by only one other US company, could help it secure favourable borrowing terms.

Meanwhile, Alphabet, Amazon, Meta, Microsoft and Oracle have doubled their combined debt to approximately $350 billion over five years as technology companies finance AI expansion. Amazon’s earlier $25 billion bond sale, however, received a lukewarm response from investors.

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