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[BUSINESS] · United States · 4 sources

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Microsoft plans US$25 billion bond issuance to fund AI expansion

Microsoft Corp. is planning to raise at least US$25 billion through its first investment-grade bond offering in the United States in over nine years. The company aims to leverage its top-tier AAA credit ratings from Moody’s and S&P Global to finance massive investments in artificial intelligence and cloud infrastructure.

The offering is expected to be structured in up to 10 tranches, with maturities ranging from two to 40 years. While the final size of the deal may fluctuate based on investor demand, the funds are intended for general corporate purposes, including capital expenditures, acquisitions, and debt repayment.

This move follows a trend among major technology firms, such as Alphabet and Amazon, that are increasingly utilizing debt markets to fund the high costs of data center expansion and AI development. Microsoft last issued high-quality debt in 2017, raising approximately US$17 billion at that time.

Entities

Azure · JPMorgan Chase & Co. · Microsoft · Microsoft Corp. · Moody’s Ratings · OpenAI · S&P Global Ratings · UBS Group AG · Wells Fargo & Co.

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