(March 10): Amazon.com Inc is returning to the bond market with a jumbo cross-border offering, adding to a borrowing spree among companies spearheading the artificial intelligence boom.
The firm is selling US high-grade bonds in as many as 11 tranches, ranging from two to 50 years, according to a person with knowledge of the matter. Initial price discussions for the longest portion of the deal — a note maturing in 2076 — are a premium of about 1.55 percentage points above Treasuries, the person added, asking not to be identified discussing private details.
The firm also plans to sell euro bonds in eight parts, with maturities of two to 38 years.
HSBC Holdings plc, Citigroup Inc, Goldman Sachs Group Inc and JPMorgan Chase & Co are managing the dollar-bond offering.
It’s the latest in a series of jumbo bond sales by hyperscalers as they plan to invest hundreds of billions of dollars in AI infrastructure. Investors have so far been eager buyers, placing orders several times the size of recent offerings.
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Last month alone, Alphabet Inc raised roughly US$32 billion ($40.74 billion) in the US and European high-grade bond markets, with Oracle Corp borrowing another US$25 billion in the US. Amazon last tapped the market in November, when it sold US$15 billion of dollar bonds.
Amazon’s offering comes at a time when equity investors grow more worried that the company’s massive spending in AI may not pay off. The firm last month said it would invest about US$200 billion in data centres, chips and other equipment in 2026, beating analysts’ estimates.
Amazon, along with Alphabet, Meta Platforms Inc Oracle and Microsoft Corp, have forecast capital expenditures of about US$650 billion in 2026.
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