Amazon's $100 Billion Bond Raise Fuels AI Expansion Amid S&P Credit Risk Warning
Amazon's credit remains strong despite S&P's warning about hyperscaler credit risk. The e-commerce and cloud-computing giant saw its stock rise by about 1.5% to $255.71 on Friday as Wall Street weighed the potential risks of Amazon's massive AI infrastructure buildout.
Axios reported that Amazon has tapped bond investors for approximately $100 billion in 2026, which will fuel its massive AI expansion. AWS revenue jumped 37% to $42.2 billion in the second quarter, while operating income hit $16.6 billion, resulting in a formidable 39.3% margin.
However, S&P's concern extends beyond Amazon's own balance sheet and into the broader ecosystem of hyperscalers helping bankroll smaller AI companies. This interconnectedness introduces risks as elite credit profiles are tied to weaker counterparties.