US EditionAI's Coming Trillion-Dollar Hangover: Amazon Leads Hyperscalers Back to the Debt Well
Amazon’s $37 billion to $42 billion bond sale is the fourth-largest in U.S. history, funding AI and cloud infrastructure amid a $200 billion 2026 capital expenditure plan.
- On March 10, Amazon.com Inc. marketed $37 billion to $42 billion in dollar and euro bonds, with a planned euro tranche of at least 10 billion euros, per SEC filing.
- Mounting AI infrastructure costs prompted Amazon to shift from internal funding to debt, as hyperscalers face $2T in capex and $1T in new debt through 2028, with about $200 billion guided for 2026.
- Investor demand showed U.S. high‑grade debt in 11 tranches attracted about $126 billion of orders, with bids 4.1 times this year’s deals, and the note maturing in 2076 priced tighter by 0.25 percentage point.
- Adding $37 billion to $42 billion to Amazon.com Inc.'s existing long‑term debt of $65.6B pushes total debt toward $100 billion-plus, the fourth-largest U.S. corporate bond market deal, stirring equity investor concern.
- Across the sector, hyperscalers including Alphabet Inc., Meta Platforms Inc., Oracle Corp. and Microsoft Corp. raised billions last month, reflecting a shift to debt-financed expansion amid an industry capex forecast of about $650 billion in 2026.
18 Articles
18 Articles
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.
Amazon looks to raise at least US$37 billion through potentially one of the biggest corporate bond offerings ever
Amazon.com Inc. has kicked off what is likely to be one of the biggest corporate bond offerings ever, in the latest blockbuster fundraising to pay for the artificial intelligence boom.
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