Amazon Plans First $12 Billion US Bond Sale In 3 Years To Boost AI Infrastructure: Report | World News


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The move comes as large technology companies step up borrowing to fund the rapidly expanding infrastructure required for AI

The e-commerce and cloud computing giant has submitted plans for a six-part bond offering.

The e-commerce and cloud computing giant has submitted plans for a six-part bond offering.

Amazon is preparing to raise around $12 billion through a major corporate bond sale, its first issuance in US dollars in nearly three years, Bloomberg News reported on Monday.

The move comes as large technology companies step up borrowing to fund the rapidly expanding infrastructure required for artificial intelligence.

According to regulatory filings, the e-commerce and cloud computing giant has submitted plans for a six-part bond offering, though the exact size was not disclosed in the documents.

The fresh debt issue reflects a broader trend across the tech sector. As demand for AI computing power accelerates, companies are pouring tens of billions of dollars into data centres, chips and cloud networks—costs increasingly met through bond markets.

Bloomberg reported that initial pricing discussions for the longest tranche of Amazon’s offering, a 40-year bond, suggest a premium of roughly 1.15 percentage points above US Treasuries, according to people familiar with the plans.

Other major firms have recently tapped the debt market as well. Meta Platforms announced last month that it would launch its largest-ever bond sale, worth up to $30 billion, to support its ongoing infrastructure build-out. Oracle is also reported to be exploring a $15 billion bond sale to support its cloud expansion.

Just earlier this month, Amazon signed a $38 billion deal with OpenAI, allowing the ChatGPT developer to run its AI systems on Amazon Web Services (AWS) data centres in the United States. Under the agreement, OpenAI will access “hundreds of thousands” of Nvidia’s specialised AI chips to power its tools.

The partnership follows OpenAI’s shift away from Microsoft, its previous exclusive cloud provider. Regulators in California and Delaware also recently approved OpenAI’s plan to form a new business structure, enabling it to raise capital and operate for profit.

In a statement on November 3, Amazon has stated, “The rapid advancement of AI technology has created unprecedented demand for computing power.”

It said OpenAI “will immediately start utilizing AWS compute as part of this partnership, with all capacity targeted to be deployed before the end of 2026, and the ability to expand further into 2027 and beyond.”

(With inputs from agencies)

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The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d… Read More

News world Amazon Plans First $12 Billion US Bond Sale In 3 Years To Boost AI Infrastructure: Report
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