Amazon (AMZN) has raised $15B in its first U.S. dollar bond offering since 2022, making it the latest tech giant to turn to debt markets to help fund massive artificial intelligence investments.
The company sold investment-grade notes in six parts on Monday, according to a filing with the Securities and Exchange Commission.
Amazon (AMZN) said it plans to use the sale proceeds for repayment of debt, acquisitions, investments, working capital, investments in subsidiaries, capital expenditures, and stock buybacks.
The bond attracted about $80B in demand at its peak, before orders were cut in half as borrowing costs fell during the sale process, sources told Bloomberg News.
Tech companies are ramping up investments on AI infrastructure to meet surging demand. Earlier this month, Alphabet (GOOG) (GOOGL) sold $25B of bonds in the U.S. and Europe.
Meta (META) sold $30B of corporate bonds in October, the largest such sale this year, while Oracle (ORCL) raised $18B through high-grade bonds in September.
JPMorgan expects this borrowing spree for financing AI investments to drive U.S. issuance of corporate bonds to a record $1.8T next year.