Amazon has returned to the bond market with one of its largest debt offerings in years, as major technology firms raise capital to finance the rapid expansion of artificial intelligence infrastructure.
According to reports from Reuters and Bloomberg, Amazon is seeking to raise about $37 billion through an 11-part bond sale, with maturities ranging from 2 to 50 years.
The company is offering bonds denominated in both U.S. dollars and euros, according to a term sheet seen by Reuters.
Strong investor demand for the deal
The offering drew strong interest from investors. Reuters reported that peak demand reached about $126 billion, meaning the bond sale was heavily oversubscribed.
One of the longest portions of the deal includes a bond maturing in 2076, initially priced at roughly 1.55 percentage points above U.S. Treasury yields, according to Bloomberg.
Major banks managing the transaction include HSBC, Citigroup, Goldman Sachs and JPMorgan Chase.
AI spending is driving a new wave of tech borrowing
The bond issuance reflects a broader trend of technology companies raising large amounts of capital to fund massive investments in artificial intelligence infrastructure, including data centres, chips and networking equipment.
Amazon’s cloud division, Amazon Web Services, plays a central role in this expansion as demand for AI computing capacity grows.
Several hyperscale technology companies have recently issued large debt offerings to support their infrastructure spending.
Last month, Alphabet raised around $32 billion in U.S. and European bond markets, including a rare 100-year bond. Meanwhile, Oracle said it expects to raise $45 billion to $50 billion by 2026 through a combination of debt and stock sales to expand its cloud infrastructure.
Amazon is returning to the bond market
Amazon last tapped the bond market in November, issuing around $15 billion in dollar-denominated bonds, which marked its first U.S. bond sale in three years.
With AI competition intensifying across the technology sector, the company’s latest bond offering highlights the scale of capital required to build the next generation of computing infrastructure.
