Amazon secures $25 billion bond sale to fund $200 billion AI infrastructure push

Amazon.com Inc. completed an eight‑tranche, $25 billion investment‑grade corporate bond offering, with maturities ranging from three to 40 years and pricing about 125 basis points above U.S. Treasury yields. The proceeds are earmarked for a $200 billion capital‑expenditure plan through 2026 to expand Amazon Web Services, build proprietary Trainium chips, and increase data‑center capacity, including a pre‑IPO stake in Anthropic.

Analysts note that the financing could generate up to $40 billion of annual negative free‑cash‑flow in 2026‑27, but the low‑cost debt gives Amazon a long‑term cost‑of‑capital advantage. Market demand for the bonds was strong, though weaker than a March $37 billion issue, signalling modest fatigue in the tech‑debt market. On the same day, Amazon’s shares rose 1.4%, reaching $247.50 after analyst upgrades and a raised price target from several banks.

The bond sale underscores Amazon’s aggressive shift toward leveraged financing to underwrite its AI compute ambitions and to compete with peers such as Microsoft in the next generation of cloud infrastructure.