Amazon's new bonds get cooler reception as AI debt floods market

Brian Smith, Michael Gambale and Davide Barbuscia, Bloomberg News on Jul 7, 2026

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When Amazon.com Inc. sold its biggest ever bond earlier this year, it was inundated with investor orders amid hype about the artificial intelligence boom. This time around, there’s less fanfare.

Peak demand for its latest $25 billion offering reached $62 billion, according to people with knowledge of the matter. That’s about half the orders it attracted for its prior $37 billion deal in March.

It signals there’s a limit to the amount of money sloshing around for debt of even the highest-rated hyperscalers. As Amazon ramps up spending on AI infrastructure, this deal would bring its total bond issuance to more than $100 billion over the past year.

Credit markets have been flooded with AI-linked debt sales, with Tuesday’s deal boosting this year’s total to about $335 billion globally, or more than twice the levels seen in 2025, the Bloomberg-compiled data show. The rapid increase in supply has fueled concerns of investor fatigue, with Amazon’s offering prompting outstanding tech bonds to weaken in the secondary market.

Amazon, like its big technology rivals, is spending heavily on data center infrastructure to expand computing capacity for itself and its cloud customers during the AI boom and has turned to different corners of the debt market to help fund the spending.

The company, which is expected to spend almost $200 billion this year, has tapped different currencies to fund its plans. The latest deal completes Amazon’s U.S. dollar funding needs for 2026, and any other debt sales in the currency would be opportunistic, the people said, asking not to be identified discussing private details.

Amazon last tapped the U.S. dollar debt market in March, when it raised $37 billion from what became the fourth-largest U.S. corporate bond sale on record. It also sold €14.5 billion ($16.6 billion) in euro-denominated bonds at the time, followed by bonds in Swiss francs in May and Canadian dollars last month, which was also a record.

Demand for Tuesday’s deal is less than three times its size, falling below the average of about four times for U.S. high-grade deals overall this year, according to Bloomberg-complied data.

Click here for Bloomberg News’s Global AI Infrastructure Debt Monitor

Amazon is selling the new debt in as many as eight tranches, ranging from three to 40 years, the people said. Pricing for the longest portion of the deal — a note maturing in 2066 — tightened by 0.2 percentage point to about 1.25 percentage point above Treasuries.

Barclays Plc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are managing transaction. Proceeds from the sale will be used for general corporate purposes, which may include repayment of debt, acquisitions and capital expenditures, the person said.

Representatives for Goldman, JPMorgan and Morgan Stanley declined to comment, while those for Amazon and Barclays didn’t immediately respond to requests for comment.

Chipmaking giant Nvidia Corp. and SpaceX each raised $25 billion from U.S. dollar high-grade bonds sales last month. New AI-linked issuance has typically received strong demand from investors. SpaceX’s debut bond weakened significantly in the secondary markets, stunning some bond traders.

(With assistance from Ying Luthra and Ed Ludlow.)