Amazon's $25 Billion Bond Sale Signals Big Tech's Debt Financing Shift

Amazon announced plans to raise $25 billion through a U.S. dollar bond sale on July 7, Reuters reported. This move extends Big Tech's focus on debt financing as companies increase AI infrastructure spending. Reuters noted that Alphabet, Microsoft, and Meta are expected to spend over $700 billion on AI this year. Bloomberg reported that demand for Amazon's offering peaked at $62 billion. The company structured the sale across eight tranches of fixed and floating-rate notes with maturities ranging from 2029 to 2066. Proceeds will be used for general corporate purposes, including future capital expenditures and repayment of upcoming debt maturities. Amazon named Barclays, Goldman Sachs, JP Morgan, and Morgan Stanley as joint book-running managers. Alphabet recently announced an $85 billion equity sale, while Meta completed $25 billion of investment-grade bonds earlier this year after a $30 billion offering in October. Amazon previously targeted $37 billion in an oversubscribed bond sale in March. > The trend toward debt financing among Big Tech firms is likely to intensify as AI infrastructure spending continues to rise. Amazon's move underscores the company's financial resilience while markets will closely monitor this debt increase.