Amazon targeting $37 billion in bond sale amid AI push

Amazon.com is looking to raise about $37 billion in ​an 11-part bond sale, according to a term sheet ‌seen by Reuters on Tuesday, as ​it looks to fund its spending on ⁠AI infrastructure buildout.

The sale attracted about $126 billion of peak demand for bonds in the U.S., a ‌source familiar with the matter said, indicating the bonds were heavily oversubscribed.

The Amazon ‌Web Services parent is offering bonds ‌denominated in ⁠dollars and euros. Amazon is the ⁠latest tech giant to sell huge amounts of debt as hyperscalers prepare to invest hundreds of billions of dollars ​in AI infrastructure.

Bloomberg ‌News first reported the news earlier in the day.

Investor appetite for high-grade corporate debt has been strong, with large technology issuers drawing ‌significant attention as investors seek relatively safe ​yields. Analysts have said the strong credit profiles of technology firms and their ⁠central role in the AI buildout have helped sustain investor demand for their debt.

In February, Google-parent ‌Alphabet raised about $32 billion in the U.S. and European high-grade bond markets, including a rare 100-year bond, the tech industry’s first since Motorola’s issuance that dates back to 1997, according to LSEG data.

Oracle said last month ‌it expects to raise $45 billion to $50 billion in 2026 using ​a combination of debt and stock sales to build additional capacity for ⁠its cloud infrastructure.

Amazon last tapped the market in November, ⁠with a dollar-denominated bond issue worth about $15 billion, which was its first U.S. bond ‌sale in three years.