Amazon Plans $12 Billion Bond Sale as Tech Giants Boost AI Spending

Amazon is preparing to raise about $12 billion through a major corporate bond sale — its first US dollar offering in nearly three years — as tech companies ramp up investments to meet soaring artificial intelligence (AI) infrastructure demands. The firm filed for a six-part bond issuance, with the longest 40-year tranche expected to be priced at about 1.15 percentage points above US Treasuries, according to Bloomberg. The proceeds may be used for acquisitions, capital expenditure and share buybacks, including Amazon’s recently announced $38 billion deal with OpenAI.

This move comes amid a broader surge in debt financing across the technology sector. Meta Platforms is planning to raise at least $25–30 billion through investment-grade bonds, following a separate $27 billion private deal to fund a data centre project in Louisiana. Meanwhile, companies like Oracle and Verizon are also tapping bond markets, reportedly seeking $15 billion and $10 billion, respectively, to support large-scale tech and telecom investments. Analysts estimate that Amazon, Meta and Alphabet will collectively spend around $400 billion in 2024 on AI-related infrastructure.

The massive capital push reflects how AI is reshaping business operations and financial strategies. Meta CEO Mark Zuckerberg and CFO Susan Li recently said that intensified AI spending is already boosting ad targeting and content recommendations — the backbone of the company’s revenue model. Meta reported a 26% jump in Q3 revenue to $51.2 billion, driven almost entirely by advertising. With hyperscalers projected to invest $3 trillion in data centres by 2028, and roughly half expected to come from credit markets, the trend of record bond offerings by tech giants appears set to continue.

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