Amazon to raise $15 billion from US bond sale

Amazon is about to raise $15 billion from its first U.S. greenback bond providing in three years, Bloomberg News reported on Monday, as huge tech companies enhance investments to construct infrastructure for synthetic intelligence.

The proceeds topped preliminary estimates of $12 billion, the report stated.

As synthetic intelligence workloads develop, huge know-how companies are turning to large-scale debt gross sales to fund infrastructure expansions that value tens of billions of {dollars}.

At the height, the bond attracted about $80 billion of demand, Bloomberg reported, citing folks with information of the matter. Proceeds could also be used for every little thing, from acquisitions and capital expenditures to share buybacks.

Amazon didn’t instantly reply to a Reuters request for remark.

The e-commerce large filed for a six-part bond sale on Monday with out disclosing a dimension, a regulatory submitting confirmed. It declined to present additional particulars on the bond sale.

Pricing discussions for the longest portion of the deal, a 40-year bond, tightened to 0.85 proportion level above Treasuries, from 1.15 proportion level initially, the report stated, citing the folks.

Last month, Meta Platforms introduced its largest bond sale of up to $30 billion, whereas cloud infrastructure and software program maker Oracle can also be reportedly trying to raise $15 billion in bond gross sales.

Major tech companies together with Meta, Amazon and Alphabet are anticipated to spend $400 billion on AI infrastructure this yr, in accordance to Morgan Stanley estimates.

Amazon has been spending extra on AI with its capital expenditure anticipated to complete round $125 billion this yr and extra the yr after. It lately introduced a $38 billion deal with OpenAI, giving a serious elevate to its cloud unit after dropping floor to Microsoft and Google.