Amazon taps debt markets again for AI spending.
The tech giant raised $25 billion through an eight-part US dollar bond sale, adding to a growing pile of debt that is helping finance its massive investment in artificial intelligence infrastructure. The company disclosed the fundraising plans in a filing with the US Securities and Exchange Commission on Tuesday but did not reveal the size of the offering.
CNBC later reported the deal’s value, citing people familiar with the matter. An Amazon spokesperson told CNBC the money will be used for general corporate purposes, including investments, future capital spending and debt repayment. The latest sale follows an unusually active borrowing campaign.
Amazon has already raised tens of billions of dollars across the US, Europe, Switzerland, and Canada over the past year as it accelerates spending on AI-related infrastructure.
Investor demand cools compared with earlier deals
While the offering attracted strong interest, Bloomberg reported that demand softened compared with previous AI-related debt sales.
Investor orders reportedly peaked at $62 billion before settling at about $41 billion after pricing was adjusted, leaving demand at roughly 1.6 times the size of the offering. Bloomberg noted that it is below the average oversubscription seen in the US investment-grade corporate bond market this year. Bloomberg also reported that Amazon offered larger pricing incentives than have typically been seen in recent months to complete the transaction.
AI spending keeps climbing
Amazon expects capital expenditures to reach about $200 billion this year, up from $131 billion in 2025, with most of that money directed toward expanding AI infrastructure.
The company joins a growing list of tech giants, including Alphabet, Meta, Microsoft, Nvidia, Oracle, and SpaceX, that have increasingly turned to debt and equity markets to finance expensive AI expansion projects instead of relying solely on existing cash reserves.
According to Reuters, the bond sale includes both fixed-rate and floating-rate notes spread across eight maturities, ranging from 2029 to 2066. Barclays, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are managing the transaction.
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What this means for the AI investment boom
Amazon’s latest fundraising highlights just how expensive the AI race has become. Rather than relying solely on their sizable cash reserves, the world’s largest technology companies are increasingly borrowing to finance long-term infrastructure that may take years to generate returns.
The deal also suggests investors are becoming more selective. Demand remains healthy, but the weaker response relative to earlier bond offerings suggests that capital markets may no longer absorb unlimited AI-related borrowing at current levels without higher costs.
For Amazon, the financing provides additional flexibility to continue expanding its AWS and AI capabilities. For investors, however, the transaction serves as an early reminder that enthusiasm for AI spending is beginning to face practical financial limits, even for some of the world’s strongest corporate borrowers.
Also read: The AI boom is driving up memory costs for smartphone makers. See how it could affect the next generation of budget Android phones.
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