Amazon's AI Buildout Consumes Record-Breaking Debt
Amazon's massive AI buildout is showing up in its debt, and the company is getting creative about where it gets that money from. The tech giant has hired banks for its first sterling bond sale, with plans to offer debt across four maturities: three, six, 12 and 19 years.
The deal could close as early as Wednesday, but the size of the offering has not yet been disclosed. This is just the latest stop in Amazon's borrowing spree, which has already seen it tap euro and Swiss-franc markets this year.
According to Bloomberg data cited by Seeking Alpha, Amazon has sold the equivalent of more than $92 billion in bonds this year, making it the largest debt issuer among major hyperscalers. This number helps explain why its latest bond sale matters, as AI infrastructure is expensive and requires significant investment in data centers, networking equipment, power, and powerful chips.
By borrowing across several currencies, Amazon can access a wider pool of investors instead of relying on the U.S. bond market alone. However, this also shows how much capital the AI race is beginning to consume. As a result, Amazon shares fell about 1% in premarket trading Tuesday.