Amazon's $25B AI-Driven Bond Sale Highlights Scaling Ambitions

Amazon's (AMZN) recent participation in a $25 billion bond sale has highlighted the company's growing reliance on artificial intelligence (AI). The deal, which offered higher yields than usual, is part of a broader trend where AI-related corporate debt now accounts for around 15% of investment-grade supply.

Morgan Stanley analysts have set a bull-case target price of $500 for Amazon, citing the company's potential to scale its AWS business towards $1 trillion in annual revenue. This would be driven by AI upside, according to the analysts' scenario.

Separately, Einride has announced that it will operate 500 Tesla Semis on behalf of Amazon over a period of two years, starting from September. The trucks will use Einride's Saga AI system, which is financed by third parties and operates across major US freight corridors.