TLDR

  • Amazon aims to raise between $37 billion and $42 billion in what is one of the largest corporate bond sales ever recorded.
  • The bond offering covers both the dollar and euro markets, with a maximum of 11 tranches in the U.S. and up to 8 tranches in Europe.
  • The maturities of U.S. bonds range from 2 to 50 years, while euro – denominated bonds have maturities from 2 to 38 years.
  • The funds raised will be used for investment in AI infrastructure.
  • Amazon last accessed the bond market in November 2024, raising $15 billion in its first U.S. bond sale in three years.

Amazon is making a significant move. The company has launched one of the largest corporate bond offerings on record, aiming to raise between $37 billion and $42 billion across the U.S. and European debt markets to support its push into artificial intelligence infrastructure.

The fundraising is divided between two markets. In the U.S., Amazon is marketing high – grade bonds in as many as 11 tranches, targeting $25 billion to $30 billion, with maturities ranging from 2 to 50 years. Separately, it is aiming to raise up to €10 billion through a potential eight – part euro bond offering, with maturities from 2 to 38 years.

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An eight – tranche euro bond deal would be unprecedented in the European market. Amazon has never issued euro – denominated bonds before, making this its debut offering in that market.

The longest – term tranche available is a note maturing in 2076. Initial price discussions suggest that this part will be set at approximately 1.55 percentage points above Treasuries.

Amazon has filed details of the U.S. portion of the bond offering with the SEC. The company has not made any public comments about the offering.

Part of a Larger Trend

Amazon’s bond deal is part of a broader trend where hyperscalers are using debt markets to fund their AI ambitions. These are large, capital – intensive investments, and bonds have become a preferred financing tool.

In February, Alphabet raised around $32 billion in the U.S. and European bond markets, including a rare 100 – year bond, the first in the tech industry since Motorola issued one in 1997. Oracle, on the other hand, said last month that it plans to raise $45 billion to $50 billion in 2026 through a combination of debt and stock issuance for cloud infrastructure.

Amazon last raised debt in November 2024, bringing in around $15 billion from a dollar – denominated bond offering, which was its first U.S. bond sale in three years.

Investor Appetite Remains Strong

The demand for high – grade corporate debt from large tech companies has remained steady. Investors are attracted to the relatively safe yields offered by issuers with strong credit profiles.

The bond markets have been receptive to large – scale deals this year, especially from companies considered crucial for the AI infrastructure build – out. Amazon’s size and credit quality firmly place it in this category.

The cross – Atlantic nature of this bond offering highlights how aggressively the company is seeking long – term financing. With maturities extending up to 50 years in the U.S. market, Amazon is clearly looking beyond the next quarter.

If Amazon achieves its total target of up to $42 billion, it would rank among the largest corporate bond deals in history.