November 17, 2025 — Amazon is preparing to raise $12 billion through its first U.S. bond sale in three years, a move that underscores the company’s aggressive push into cloud infrastructure and artificial intelligence hardware. The offering, reported by Bloomberg, comes as Amazon ramps up capital spending to meet surging demand for computing power.
Capital Expenditure Surge
In the third quarter, Amazon’s capital expenditures jumped 61% year‑on‑year to $34.2 billion, driven by investments in data centers, semiconductor chips, and AI‑related infrastructure. Analysts note that this level of spending rivals that of Microsoft and Google, reflecting the intensifying race to dominate the next generation of cloud and AI services.
Strategic Context
The bond sale is expected to provide liquidity for Amazon’s expansion while taking advantage of relatively stable credit markets. With interest rates still elevated, the company’s decision to tap debt markets highlights confidence in its long‑term growth trajectory. Amazon’s cloud arm, AWS, remains the largest global provider of cloud services, but faces mounting competition from Microsoft Azure and Google Cloud, both of which are investing heavily in AI‑optimized infrastructure.
Market Impact
- The $12B bond issue is one of the largest corporate offerings of 2025, signaling strong investor appetite for tech‑driven debt.
- Proceeds are expected to fund AI chip procurement, hyperscale data centers, and renewable energy projects tied to Amazon’s sustainability commitments.
- Credit analysts suggest Amazon’s balance sheet remains resilient, supported by robust cash flows from e‑commerce and cloud operations.
Outlook
Amazon’s return to the bond market reflects both the scale of its AI ambitions and the capital intensity of cloud infrastructure. As global demand for computing power accelerates, the company’s $12B debt raise positions it to sustain leadership in one of the most competitive sectors of modern technology.
Sources: Bloomberg, Reuters, Financial Times, CNBC.
