Amazon.com Inc. (NASDAQ:AMZN) has started what could become one of the largest corporate bond offerings ever as it seeks funding for its artificial intelligence investments.
Amazon Targets Up To $42 Billion In Bond Sale
The wants to raise about $37 billion to $42 billion through a bond sale in U.S. dollars and euros, Bloomberg reported on Tuesday, citing people familiar with the matter.
Amazon is marketing U.S. high-grade bonds in as many as 11 tranches, with maturities ranging from 2 to 50 years, and aims to raise $25 billion to $30 billion, the bloomberg report said.
The company is also aiming to raise up to 10 billion euros through a potential eight-part debut euro bond sale with maturities ranging from two to 38 years. The euro bond market has not previously seen an eight-tranche offering.
According to the Bloomberg report, HSBC Holdings Plc, Citigroup Inc., Goldman Sachs Group Inc., and JPMorgan Chase & Co. are managing the dollar bond sale.
Global Markets Stabilize As Geopolitical Tensions Ease
The report said that bond issuance has resumed globally after credit risk measures declined following comments from U.S. President Donald Trump suggesting the war with Iran may end soon.
Trump said Monday in a phone interview with CBS News that the U.S. campaign against Iran may be nearing its conclusion, adding that Tehran's military capabilities have been significantly weakened.
Last week, Amazon said drone strikes recently hit some of its data centers in the United Arab Emirates and Bahrain, raising concerns about the pace of technology infrastructure development in the region.
AI Spending Wave Fuels Record Fundraising
Amazon's offering is the latest in a series of large bond sales by major technology companies, including Alphabet Inc. (NASDAQ:GOOGL) and Oracle Corp (NYSE:ORCL), investing heavily in AI infrastructure.
Amazon last issued bonds in November, raising $15 billion in dollar-denominated debt.
JPMorgan warned that Amazon may still require additional liquidity despite holding about $84 billion in cash and marketable securities and carrying $58 billion in debt.
The bank said Amazon's spending on AI and data centers could rise to around $150 billion by fiscal 2026, potentially exceeding its current cash reserves.
Bloomberg reported that investor demand for the offering reached about $80 billion at its peak, citing people familiar with the matter.
Amazon, along with Alphabet Inc. (NASDAQ:GOOGL), Meta Platforms Inc. (NASDAQ:META), and other Big Tech giants, has projected combined capital expenditures of about $650 billion in 2026.
AMZN Price Action: Amazon.com shares were up 0.83% at $215.27 at the time of publication on Tuesday, according to Benzinga Pro data.
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This article Amazon Wants To Raise $42 Billion Via Bond Sale To Fuel Massive AI Spending Spree: Report originally appeared on Benzinga.com
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