Amazon Plans $25B Bond Sale to Fund AI Infrastructure

The company disclosed the offering in a regulatory filing on Tuesday, with proceeds earmarked for capital expenditures, including data centers and other AI-related investments. The bond sale is split into eight tranches with maturities ranging from three to 40 years.

Amazon's move follows a surge in capital spending across the tech sector as companies race to expand computing capacity for artificial intelligence. The company's cloud unit, Amazon Web Services, has been investing heavily in new data centers and custom AI chips to compete with rivals like Microsoft and Google.

The filing did not specify the exact interest rates or final pricing, which will be determined based on market conditions. Amazon last tapped the bond market in 2023, when it raised $5 billion for general corporate purposes.

The company's shares were little changed in after-hours trading following the announcement. Amazon is scheduled to report quarterly earnings later this month, where investors will likely seek updates on its AI spending plans.