Amazon has returned to the US bond market for the first time since 2022, securing billions to accelerate its artificial intelligence infrastructure buildout.
The AI giant has raised $15 billion from a bond sale that will support acquisitions, capital expenditures and share buybacks, alongside ongoing investment in data centers and custom silicon, reports Bloomberg.
The offering drew peak demand of roughly $80 billion, before orders were reduced as pricing tightened during the bookbuild.
Amazon sold investment-grade notes across six tranches. The 40-year portion is priced at 0.85 percentage points above Treasuries, tightening from initial talk of 1.15. Analysts project Amazon’s capital spending to top $147 billion next year, nearly triple 2023 levels, driven by AI training and inference workloads across AWS.
In October, Meta raised $30 billion in a blockbuster bond sale that saw investors rushing in to place orders worth $125 billion. Other public AI firms that have tapped the US bond market this year include Oracle and Alphabet.
Last week, reports emerged that banking titan JPMorgan Chase predicted that US investment-grade bond issuance would surge to an all-time high next year. According to the bank’s analysts, total supply is expected to hit $1.81 trillion in 2026, eclipsing the previous record of $1.76 trillion set in 2020.
JPMorgan says the bond issuance next year will be fueled by improved rates, heavy AI spending and revived dealmaking.
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