Amazon seeks to raise at least US$25 billion from bond sale

[NEW YORK] Amazon.com is looking to raise at least US$25 billion from a US dollar bond sale, its latest funding push as the company ramps up investment in artificial intelligence infrastructure.

The size of the offering could increase depending on investor demand, according to people familiar with the matter, who cautioned that no final decision has been made.

The firm is selling the debt in as many as eight tranches, ranging from three to 40 years, the people said, asking not to be identified discussing private details. Initial price talk for the longest portion of the deal – a note maturing in 2066 – is a premium of about 1.45 percentage point above Treasuries.

Barclays, Goldman Sachs, JPMorgan Chase and Morgan Stanley are managing the bond offering. Proceeds from the sale will be used for general corporate purposes, which may include repayment of debt, acquisitions and capital expenditures, the person said.

A representative for JPMorgan declined to comment, while those for Amazon and the other banks did not immediately respond to requests for comment.

It’s the latest in a series of jumbo bond sales by massive cloud computing firms known as hyperscalers, as they pour hundreds of billions of US dollars into AI infrastructure. Investors have so far been eager buyers, placing orders several times the size of recent offerings. BLOOMBERG