Amazon Seeks to Raise at Least $25 Billion to Fund AI Spending

Summary

Amazon is raising at least $25 billion in USD bonds to fund AI spending, with Bloomberg Intelligence suggesting capex could top $300 billion next year. Credit analyst Robert Schiffman argues hyperscalers have rock-solid credit, massive borrowing capacity, and strong demand for their bonds, calling them the 'Mount Rushmore of credit.' Ed Ludlow highlights equity-market concerns around AI ROI, noting capex growth is outpacing revenue and memory pricing remains inflationary.

• Amazon launches $25 billion USD bond sale to fund AI infrastructure spending
• Bloomberg Intelligence forecasts total capex could exceed $300 billion next year
• Robert Schiffman says hyperscalers like Amazon have AA/AAA credit and huge borrowing capacity
• Demand for hyperscaler bonds continues to outstrip supply as they lock in long-term fixed rates
• Ed Ludlow notes equity-side pressure: capex growth outpaces revenue growth
• Tight memory supply and rising memory prices add to construction cost inflation
• Amazon management previously explained capex growth is also driven by rising data center construction costs