Tech firms have increasingly turned to debt markets and initiated equity sales to support their expansive AI infrastructure development. Major players like Amazon, Alphabet, Microsoft, and Meta are projected to invest over $700 billion in AI this year.
According to Bloomberg, the magnitude of Amazon’s offering may grow based on demand from investors. The company did not provide an immediate comment to a Reuters inquiry.
A regulatory submission by the tech firm earlier today revealed its plans for an eight-part series of floating and fixed-rate notes.
The shift towards raising funds through debt and equity offerings signifies a change for Silicon Valley leaders, who have traditionally depended on their cash reserves for investments. Recent debt offerings have shown strong interest from investors.
Last month, Google-parent Alphabet announced plans to raise approximately $85 billion through an expanded equity sale. Earlier this year, Facebook-parent Meta issued investment-grade bonds totaling $25 billion, following a $30 billion bond offering in October, which marked the company’s largest issuance to date.
In its exchange filing, Amazon noted that Barclays, Goldman Sachs, J.P. Morgan, and Morgan Stanley are acting as the joint book-running managers for this offering.
The company had earlier aimed for a $37 billion raise in a heavily oversubscribed 11-part bond offering in March.
