Prime Highlights-
- Big Tech taps debt and equity markets as combined AI spending set to exceed $730 billion.
- Amazon, Nvidia, Oracle, Alphabet lead wave of multibillion dollar bond offerings for AI buildout.
Key Facts-
- Amazon pursues multiple bond sales including $37 billion offering and first Swiss franc notes.
- Oracle targets $45 billion to $50 billion in debt and stock for cloud expansion.
Background-
The world’s biggest technology companies are increasingly turning to debt markets and equity raises to fund their expanding AI infrastructure, marking a shift toward diversified funding models that broaden how Silicon Valley finances growth.
Alphabet, Amazon, Microsoft, and Meta have signaled continued momentum in AI spending, with combined outlays among tech giants now set to exceed $730 billion, up from an earlier projection of about $700 billion.
Analysts at Bridgewater Associates point to the AI boom entering a bigger, more capital-intensive phase, marked by sharply rising investment in physical infrastructure and expanding use of outside capital to support growth.
Amazon is looking to raise at least $25 billion through the US bond market via an eight-part offering of floating and fixed-rate notes, a regulatory filing showed. The bonds being issued by the company are senior and unsecured, with terms stretching anywhere from three years out to 40.
It has also issued C$14 billion in Canadian dollar denominated notes, the largest such deal in the Canadian corporate bond market, and is preparing its first Swiss franc bond offering in six parts. Separately, the retailer is pursuing an 11-part bond sale worth about $37 billion.
Nvidia plans to raise $25 billion through a US bond issuance, tapping debt markets to boost liquidity for the first time in years. The offering includes seven note tranches maturing as late as 2056.
Salesforce priced a $25 billion debt offering to help fund a $50 billion share buyback program, alongside a 5.8 percent dividend increase.
Oracle expects to raise between $45 billion and $50 billion through a mix of debt and stock to expand cloud infrastructure capacity. The company is also working through a bondholder lawsuit connected to disclosures around the debt scale needed for its AI buildout, after earlier raising about $18 billion through a six-part debt offering.
Alphabet is seeking between $20 billion and $25 billion in its latest bond sale, offering notes in as many as 10 parts.
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