Amazon raising at least $25B in bond sale

Summary

CNBC's Kate Rooney reports Amazon is raising $25 billion in bonds to fund its AI data center buildout, following other big tech companies. Amazon faces negative free cash flow this year but has a history of heavy investing that later pays off. The growing reliance on borrowing has added to volatility in big tech names.

• Amazon raising $25B in bond sale, partly for AI data centers.
• Amazon will not issue more debt this year, per sources.
• Bond issuance follows similar mega debt deals by Google, SpaceX, Oracle, Meta.
• Amazon expected to see negative free cash flow this year.
• Company has a history of cash depletion for big project investments that later pay off.
• Growing reliance on borrowing adds volatility to big tech stocks.