Amazon launches first sterling bond sale to fund AI expansion

Amazon is conducting its first-ever sterling bond sale, aiming to raise approximately 4 billion pounds ($5.43 billion). The deal, which saw strong demand of over 12 billion pounds, consists of four tranches with maturities of 3, 6, 12, and 19 years.

This move is part of a broader trend where hyperscalers are diversifying their funding sources across international markets—including euros, Swiss francs, and Canadian dollars—to finance the massive capital requirements of the artificial intelligence boom. Amazon has projected annual capital expenditures of roughly $200 billion, primarily directed toward AI infrastructure and the expansion of Amazon Web Services.

This follows similar international debt market activity from other tech giants, such as Alphabet, which tapped the sterling market earlier this year. The heavy pace of borrowing by these large-scale technology companies has prompted warnings from the European Central Bank regarding the potential for crowding out other borrowers in the euro zone bond market.