Amazon seeks to raise $12 billion from US bond sale.
Amazon plans to raise about $12 billion in corporate bonds, its first such deal in U.S. dollars in about three years, as big tech firms increase investments to build infrastructure for artificial intelligence.
The e-commerce giant filed for a six-part bond sale earlier in the day without disclosing a size, a regulatory filing showed. The company declined to provide further details on the bond sale.
As artificial intelligence workloads grow, big technology firms are turning to large-scale debt sales to fund infrastructure expansions that cost tens of billions of dollars.
Initial price discussions for the longest portion of the deal, a 40-year bond, are for a premium of about 1.15 percentage points above Treasuries, citing people familiar with the matter.
Last month, Meta Platforms announced its biggest bond sale of up to $30 billion, while cloud infrastructure and software maker Oracle is also reportedly looking to raise $15 billion in bond sales.
U.S. wireless provider Verizon is also reportedly seeking to raise about $10 billion through bond sales to fund its $20 billion deal for Frontier.
Major tech firms including Meta, Amazon and Alphabet are expected to spend $400 billion on AI infrastructure this year, according to Morgan Stanley estimates.
Amazon has been spending more on AI with its capital expenditure expected to total around $125 billion this year and more the year after.
Source: financeyahoo
