Amazon is set to raise $15 billion from its first U.S. dollar bond offering in three years, according to a Securities and Exchange Commission filing on Monday. The e-commerce giant plans a six-part bond sale, with proceeds earmarked for acquisitions, capital expenditures, and share buybacks.
Bloomberg reported that demand for the bonds peaked at around $80 billion. Pricing for the 40-year portion of the sale tightened to 0.85 percentage point above Treasuries, down from an initial 1.15 percentage point.
Big tech firms are increasingly turning to debt sales to fund AI infrastructure, with Meta raising up to $30 billion and Oracle reportedly planning a $15-billion offering. Morgan Stanley estimates Amazon, Meta, and Alphabet will spend $400 billion on AI this year.
Amazon’s capital expenditure is expected to reach $125 billion this year and beyond, highlighted by a recent $38-billion deal with OpenAI to boost its cloud business after losing ground to Microsoft and Google.