Amazon.com Inc. (AMZN) finalized a massive $25 billion investment-grade bond sale on Tuesday, dragging down outstanding hyperscaler debt across the secondary market.
The eight-part offering drew $62 billion in peak investor demand, though appetite cooled sharply compared to Amazon’s blockbuster $37 billion debt sale in March.
Investors sold existing securities to fund the new issue, pushing Amazon’s outstanding bonds roughly seven to ten basis points wider, according to dealer pricing runs reviewed by Bloomberg.
SpaceX bonds were quoted nine to thirteen basis points wider, while notes from Alphabet Inc., Nvidia Corp. (NVDA), Meta Platforms Inc. (META), and Oracle Corp. (ORCL) also weakened.
The tech sector ranked among the worst performers in the US high-grade secondary market on Tuesday, pressured heavily by the sheer size of the Amazon offering.
Amazon’s eight-tranche deal included one floating-rate option and seven fixed-rate securities, spanning maturities from three to forty years.
All tranches priced tighter than initial guidance, reflecting Amazon’s sterling credit ratings of A1, AA, and AA- from major ratings agencies.
The deal pushes Amazon’s total borrowing past the $100 billion mark over the last year, fueling a projected $200 billion capital expenditure budget for 2026.
Trailing twelve-month free cash flow has collapsed to $1.2 billion, down roughly 95%, as spending on AI data centers, custom Trainium chips, and NVIDIA GPU deployments accelerates well ahead of revenue.
Long-term debt has already jumped from $65.6 billion at year-end 2025 to $119.1 billion by the end of the first quarter of 2026, while interest expense climbed to $800 million from $541 million a year earlier.
An Amazon spokesperson said proceeds are earmarked for general corporate purposes, including supporting investments, funding future capital expenditures, and repaying existing debt.
Amazon also told underwriters it does not plan to issue additional debt for the remainder of the year, offering some relief to a market showing signs of supply fatigue.
Barclays, Goldman Sachs, J.P. Morgan, and Morgan Stanley shared underwriting duties on the transaction, according to Amazon’s SEC filing.
The deal single-handedly pushes global AI-linked debt issuance past $335 billion for the year, underscoring how aggressively major technology companies are tapping capital markets.
Combined AI outlays from Amazon, Alphabet (GOOGL), Microsoft (MSFT), and Meta are on track to exceed $700 billion in 2026, according to Reuters, with AI-related debt now accounting for approximately 15% of the entire US corporate bond universe.
