Amazon seeks to raise $25 billion through bond sale: report

Amazon has filed a regulatory request to launch an eight-part U.S. dollar bond sale with the goal of borrowing billions of dollars from institutional investors as demand for tech debt is incredibly high right now.

As reported by Bloomberg News, the tech giant is looking to raise at least $25 billion through a U.S. dollar bond sale in the company's latest push to fund its hefty AI investments.

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Wall Street insiders expects the final amount raised could go even higher.

Building and running the data centers, buying specialized AI microchips and securing the massive amounts of energy required to power generative AI models is staggeringly expensive.

Amazon's projected capital expenditure budget is an unprecedented $200 billion, up sharply from $131 billion previously.

CEO Andy Jassy has defended this aggressive spending to shareholders, calling AI a "once-in-a-lifetime opportunity.

Tech companies have been tapping debt markets and launching equity sales to fund their costly AI infrastructure build-out.

Big Tech, including Amazon, Alphabet, Microsoft and Meta, are expected to spend more than $700 billion on AI this year.

As reported, the size of Amazon's offering could increase depending on investor demand. The tech giant is issuing senior unsecured bonds with maturities ranging from three to 40 years.

An Amazon spokesperson said proceeds from the bond sale will be used for corporate purposes, including future capital expenditures and repaying upcoming debt maturities.

The bonds are being managed by major banks including Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Barclays.

Alphabet 's Google recently launched a massive $85 billion equity sale while Meta's Facebook issued $25 billion in bonds earlier this year.