Amazon Raises $15 Billion In Oversubscribed Bond Sale Amid Surging AI Cost

Amazon.com, Inc. (AMZN) is raising $15 billion through its first U.S. dollar bond sale since 2021.

Amazon Raises Cash As AI Spending Accelerates

On Monday, the company launched a six-part bond offering, according to a filing with the Securities and Exchange Commission.

The issuance included $2.5 billion each in 2028 and 2030 notes, $1.5 billion in 2033 notes, $3.5 billion in 2035 notes, $3 billion in 2055 notes and $2 billion in 2065 notes.

Goldman Sachs (GS) , JPMorgan Chase (JPM) and Morgan Stanley (MS) are the banks overseeing the bond offering.

The longest tranche in the offering will mature on Nov. 20, 2065.

The notes will carry interest rates ranging from 3.9% for the 2028 notes, 4.1% for the 2030 notes, 4.35% for the 2033 notes, and 4.65% for the 2035 notes to 5.45% for the 2055 notes and 5.55% for the 2065 notes, all accruing from Nov. 20, 2025.

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JPMorgan Earlier Warned Amazon's Cash Cushion May Fall Short

This came after JPMorgan (JPM) cautioned that Amazon (AMZN) may still need more liquidity, even though it holds about $84 billion in cash and marketable securities and carries $58 billion in debt.

The AI and data center spending could climb toward $150 billion by FY26, a level that may surpass Amazon's (AMZN) current cash reserves.

Investor demand reached around $80 billion at its peak, reported Bloomberg, citing people familiar with the matter.

The company also lowered the borrowing cost on the longest 40-year bond, tightening it to about 0.85 percentage points above Treasuries from the initial 1.15 points, the report said.

The offering is expected to fund a range of uses, including acquisitions, capital spending and share repurchases.

Meta And Oracle Lead Big Tech Borrowing Wave

Amazon (AMZN) has not issued new debt since paying off maturities in 2022. This is despite its competitors being active in the market. Last month, Meta Platforms, Inc. (META) raised $30 billion and Oracle Corp (ORCL) secured $18 billion this year.

In October, Amazon (AMZN) reported third-quarter net sales of $180.2 billion, a 13% increase from a year earlier and ahead of the $177.8 billion forecast by analysts.

Price Action: On Monday, the e-commerce giant closed at $232.87, down 0.78% and slipped further to $232.08 in after-hours trading, according to Benzinga Pro.

Benzinga's Edge Stock Rankings show the stock maintaining a strong upward price trend across short, medium and long-term periods. Click here for a detailed breakdown of how it stacks up against peers and competitors.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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