Amazon Raises $25B in Bonds on July 8 Amid Big Tech AI Debt Expansion

According to Business Insider, Amazon issued $25 billion in corporate bonds on July 8 as Big Tech companies expand debt to finance artificial intelligence infrastructure investments. The offering attracted over $62 billion in investor demand, more than double the issuance amount.

Morgan Stanley portfolio manager Vishal Khanduja warned that major tech companies are borrowing excessively and that credit risk is underpriced in current markets. From January through May, Amazon, Meta, Alphabet, and Oracle collectively issued $159 billion in corporate bonds, with analysts projecting the AI bond market could grow to $7 trillion by 2029.