Amazon is preparing to sell $2.5 billion in bonds, with subscriptions exceeding $6.2 billion.

Amazon is preparing to raise $25 billion through eight bond issuances, with over $62 billion in subscriptions, to accelerate investment in AI infrastructure.

July 8, 2569 at 08.15:XNUMX a.m., Reuters reported that Amazon.com is preparing to raise $25,000 billion through a US dollar-denominated bond issuance to support its increasing investment in artificial intelligence (AI). This marks another move by major technology companies to utilize the capital markets to secure investment for AI infrastructure.

The report indicates that demand for Amazon's bonds reached $62 billion, more than double the offered price, reflecting investor confidence in the company, although Amazon has not yet commented on the subscription amount.

This bond issue is divided into eight tranches, both fixed and floating interest rates, with maturities between 2029 and 2066, as per the company's disclosure to the market.

An Amazon spokesperson stated that the proceeds from the bond issuance will be used for the company's general purposes, including future capital expenditure and the repayment of maturing debt.

The shift towards raising funds through bond issuance and equity sales marks a shift among major technology companies, which have historically relied primarily on internal cash flow for investment.

However, the increasingly intense competition in AI is forcing companies to invest heavily in building data centers and AI infrastructure.

Analysts predict that Amazon, Alphabet, Microsoft, and Meta will spend more than $700,000 billion combined on AI this year.

Previously, Alphabet, Google's parent company, announced plans to raise approximately $85,000 billion through a stock offering. Meanwhile, Meta raised $25,000 billion this year through an investment-grade bond issuance, following its $30,000 billion bond issuance last October, the largest bond deal in the company's history.

For this bond offering, Amazon appointed Barclays, Goldman Sachs, JP Morgan, and Morgan Stanley as joint bookrunners.

Earlier in March, Amazon raised $37,000 billion through 11 bond issuances, which received overwhelming interest from investors and were significantly oversubscribed.

refer : reuters.com

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