Amazon's $92 Billion Bond Borrowing Raises Concerns About AI Strategy Sustainability

Amazon's massive borrowing spree has left investors questioning whether the company's AI strategy is sustainable. The e-commerce giant has borrowed $92 billion in bonds this year alone, with most of it used to fund its $220 billion capital expenditure budget for infrastructure buildout.

The bond market has become essential to Amazon's AI plans, as the company spends faster than it generates cash. Free cash flow plummeted from $32.9 billion in 2024 to $7.7 billion in 2025, with nearly all of the operating cash flow going into infrastructure costs.

Investor appetite for hyperscaler bonds is weakening, with Amazon's September sterling bond sale drawing only 2.5 times demand compared to Alphabet's February sale which drew five times demand. The European Central Bank has also warned that hyperscaler borrowing risks crowding out other issuers and absorbing investor capacity.