Amazon raises $25B in bond sale to fuel AI infrastructure spending

Amazon has raised $25 billion through an eight-part U.S. dollar bond sale to accelerate its AI infrastructure spending, marking one of the largest corporate debt offerings this year. The transaction, disclosed in an SEC filing and reported by CNBC, includes both fixed-rate and floating-rate notes with maturities ranging from 2029 to 2066. Proceeds will be used for general corporate purposes, including capital investments and debt repayment. The sale follows an unusually active borrowing campaign, with Amazon tapping debt markets across the U.S., Europe, Switzerland, and Canada over the past year as it ramps up spending on AI-related data centers and hardware.

Investor demand, while still strong, showed signs of cooling compared to earlier AI-focused debt sales. According to Bloomberg, orders peaked at $62 billion before settling at roughly $41 billion after pricing adjustments, yielding a 1.6x oversubscription ratio—below the average seen in the U.S. investment-grade corporate bond market this year. Amazon offered larger pricing incentives to complete the deal. The company expects 2026 capital expenditures to reach about $200 billion, up from $131 billion in 2025, with most directed toward AI infrastructure. This move echoes broader industry trends as Alphabet, Meta, Microsoft, Nvidia, Oracle, and SpaceX increasingly rely on debt and equity markets to fund expensive AI expansion rather than existing cash reserves.