Amazon seeks another $25B from bond sale as AI spending pushes Big Tech deeper into debt

The AI boom is getting more expensive by the month, and even the world’s richest tech companies are turning to Wall Street to pay the bill.

Fresh off a $17.5 billion borrowing deal with banks in March, Amazon is now looking to raise at least $25 billion through a U.S. dollar bond sale, according to a Bloomberg News report published Tuesday. The move places Amazon alongside Alphabet and Meta, which have all tapped debt and equity markets this year to finance the enormous cost of building AI infrastructure.

“Amazon.com Inc. is looking to raise at least $25 billion from a US dollar bond sale, its latest funding push as the company ramps up investment in artificial intelligence infrastructure,” Bloomberg reported.

The planned offering comes at a time when spending on AI data centers, custom chips, networking equipment, and cloud infrastructure has reached levels rarely seen in the technology industry. Analysts expect Amazon, Alphabet, Microsoft, and Meta to spend more than $700 billion on AI this year, reflecting the scale of the race to build the computing capacity needed for next-generation AI services.

Bloomberg reported that the size of Amazon’s bond offering could grow if investor demand remains strong. People familiar with the matter told the publication the company is seeking at least $25 billion, continuing a funding strategy that has drawn heavy interest from institutional investors.

“The size of the offering could increase depending on investor demand,” the report added, citing people familiar with the matter, who cautioned that no final decision has been made.

Amazon Turns to Wall Street Again, Seeking $25 Billion to Finance AI Investments

A regulatory filing submitted Tuesday showed Amazon has registered an eight-part offering consisting of both floating-rate and fixed-rate notes. Barclays, Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as the joint book-running managers for the transaction.

The planned sale follows Amazon’s $17.5 billion financing package announced in March, when the company borrowed from a group of banks to support its growing AI investments. That financing attracted strong demand and reflected a broader shift across Silicon Valley, where companies with massive cash reserves are increasingly turning to debt markets to fund AI expansion rather than relying entirely on existing cash.

Investor appetite for those offerings has remained strong.

Amazon’s previous bond sales have attracted more than $80 billion in orders, underscoring the market’s confidence in the company despite the unprecedented level of capital flowing into AI infrastructure.

The financing trend extends well beyond Amazon.

Alphabet last month announced plans to raise roughly $85 billion through an upsized equity offering, adding fresh capital for its AI initiatives. Meta has followed a similar path, selling $25 billion of investment-grade bonds earlier this year after completing a record $30 billion bond sale in October.

The growing reliance on external financing marks a notable shift for an industry that historically funded major investments from operating cash flow. AI has changed the equation. Building massive data centers, securing enough advanced chips, and expanding cloud infrastructure now require capital commitments measured in tens of billions of dollars.

For investors, Amazon’s latest offering is another sign that the AI race is entering a new phase. The competition is no longer defined solely by who builds the smartest models. It is increasingly becoming a contest over who can finance the largest AI infrastructure buildout and how much debt the industry’s biggest players are willing to take on to stay ahead.

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