Giant companies keep borrowing nonstop! Amazon issues 11 batches of bonds across multiple currencies, with the market closely watching the AI monetization cycle

Amazon is launching what is expected to be the largest corporate bond issuance in history to support its massive investments in artificial intelligence infrastructure.

According to Bloomberg, citing sources familiar with the matter, Amazon is issuing bonds simultaneously in the U.S. dollar and euro markets, with a total target fundraising of approximately $37 billion to $42 billion equivalent.

The U.S. dollar portion plans to issue up to 11 tranches, raising $25 billion to $30 billion; the euro portion aims to issue up to 8 tranches, with a maximum target of €10 billion.

However, market sentiment is becoming cautious. Last month, Amazon announced a capital expenditure of about $200 billion in 2026, exceeding analyst expectations, and some equity investors are increasingly concerned about whether its AI investments can be monetized as planned.

11 Tranches of USD Bonds, 50-Year Maturity, 155 Basis Points Premium

Bloomberg reports that the USD bond issuance is underwritten jointly by HSBC, Citigroup, Goldman Sachs, and JPMorgan.

The issuance includes maturities ranging from 2 to 50 years, with the longest tranche maturing in 2076. Initial pricing discussions suggest a spread of about 155 basis points over U.S. Treasuries.

Amazon’s last entry into the U.S. dollar bond market was in November last year, with a issuance size of $15 billion. Compared to this, the current fundraising scale has increased significantly.

Euro Bond Market “Debut,” 8 Tranches Set a Record

This time, Amazon will issue euro bonds in up to 8 tranches, with maturities from 2 to 38 years, and a maximum target of €10 billion.

There has never been a single transaction in the euro bond market covering 8 tranches before, so Amazon’s move will set a precedent.

The overall bond issuance in Europe was also active that day. Bloomberg reports that the bond issuance planned for Tuesday this week in Europe reached at least €21 billion, making it the busiest single-day issuance since tensions in the Middle East escalated.

Massive Issuance Wave, Tech Giants Borrowing to Bet on AI

This issuance continues the recent trend of large-scale bond offerings by cloud computing and tech giants.

Bloomberg reports that just last month, Alphabet raised a total of about $32 billion in high-grade bonds in USD and euro markets, while Oracle borrowed $25 billion in the U.S. market.

Investors showed strong interest in these offerings, with subscription levels generally multiple times the issuance size.

From a broader perspective, Amazon, Alphabet, Meta Platforms, Oracle, and Microsoft are expected to have a combined capital expenditure of about $650 billion by 2026.

By leveraging bond markets for financing, these tech giants can maintain high levels of investment without significantly diluting shareholder equity.

Stock Market Concerns vs. Bond Market Enthusiasm

Despite strong demand in the bond market, concerns about AI investment returns are growing in the stock market.

Amazon’s announced $200 billion capital expenditure plan for 2026 last month exceeded analyst expectations, raising questions among some equity investors about the pace of spending and the uncertain timeline for monetization.

Whether this bond issuance will receive sufficient subscription and the final pricing level will, to some extent, reflect market confidence in the AI investment logic of these tech giants.

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