US EditionAI's Coming Trillion-Dollar Hangover: Amazon Leads Hyperscalers Back to the Debt Well
Amazon's $37 billion U.S. bond sale, part of a nearly $50 billion cross-Atlantic deal, supports major AI and data center investments amid strong investor demand.
- On March 10, Amazon.com Inc. filed for a cross‑Atlantic bond sale targeting $37B-$42B in U.S. dollar and euro bonds, aiming to raise at least 10 billion euros as early as March 11.
- Amazon guided roughly $200 billion in capex for 2026 as hyperscalers shift from internal funding to debt, with Morgan Stanley warning about $2T AI spending and over $1T financed through new debt.
- Orders for the U.S. portion topped about $126 billion, one of the largest corporate books ever, as Amazon marketed debt in 11 tranches and increased the offering from $25 billion to $30 billion.
- Amazon's existing long‑term debt is about $65.6 billion, which a new raise would push toward $100 billion‑plus, and analysts say free cash flow may turn negative temporarily in 2026 as equity investors grow worried.
- Forecasts show roughly $650 billion in hyperscaler capex for 2026, and Amazon.com Inc.'s almost $2.3 trillion market cap means its deal may not reflect broader credit demand amid geopolitical uncertainty.
21 Articles
21 Articles
After the huge US bond, the Group makes its debut on the European bond market with 14.5 billion euros. The large tech providers currently need enormous sums for investments.
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.
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