Nov 17 (Reuters) - Amazon ( AMZN ) will raise $15
billion from its first U.S. dollar bond offering in three years,
according to a filing with the Securities and Exchange
Commission on Monday, as big tech firms ramp up investments in
AI infrastructure.
Big technology firms are turning to debt sales worth
tens of billions of dollars to fund infrastructure expansions as
demand for artificial intelligence workloads surges.
The e-commerce giant filed for a six-part bond sale earlier
on Monday. Proceeds may be used for everything, from
acquisitions and capital expenditures to share buybacks.
At the peak, the bond attracted about $80 billion of demand,
according to Bloomberg News, which first reported the
development.
Pricing discussions for the longest portion of the deal,
a 40-year bond, tightened to 0.85 percentage point above
Treasuries, from 1.15 percentage point initially, the report
said.
Last month, Meta Platforms ( META ) 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.
Major tech firms including Meta, Amazon ( AMZN ) and Alphabet
are expected to spend $400 billion on AI
infrastructure this year, according to Morgan Stanley
estimates.
Amazon ( AMZN ) has been spending more on AI with its capital
expenditure expected to total around $125 billion this year and
more the year after. It recently announced a $38 billion deal
with OpenAI, giving a major lift to its cloud unit after losing
ground to Microsoft ( MSFT ) and Google.