Big players keep borrowing! Amazon issues 11 batches of cross-currency bonds, market closely watching AI monetization cycle

```

Amazon is launching what is considered the largest ever corporate bond issuance to support its massive investment plans in AI infrastructure.

According to Bloomberg, citing sources, Amazon is issuing bonds simultaneously in the US dollar and euro markets, with a total target fundraising amount of approximately $37-42 billion equivalent.

The dollar segment plans to offer up to 11 tranches, raising $25-30 billion; the euro segment aims to issue up to 8 tranches, with a maximum target fundraising of €10 billion.

However, the sentiment in the stock market is turning cautious. Last month, Amazon announced capital expenditures of about $200 billion for 2026, exceeding analysts' expectations. Some equity investors are increasingly concerned about whether its AI investments will be monetized as anticipated.

11 tranches of dollar bonds, 50-year tranche with 155 basis points premium

According to Bloomberg, this dollar-denominated bond issuance is jointly underwritten by HSBC Holdings, Citigroup, Goldman Sachs, and JPMorgan Chase.

The offerings include maturities from 2 to 50 years, with the longest tranche being notes maturing in 2076. Preliminary pricing discussions indicate its spread is about 155 basis points above US Treasuries.

Amazon last entered the dollar bond market in November last year, with an issuance size of $15 billion. Compared to that, this round of financing is a significant increase.

Euro bond market debut, 8 tranches set a record

This euro bond issuance by Amazon will be conducted in up to 8 tranches, covering maturities from 2 to 38 years, with a maximum fundraising target of €10 billion.

The euro bond market has never seen a single transaction cover 8 tranches before, marking a precedent set by Amazon.

European markets were also highly active on the same day. According to Bloomberg, at least €21 billion in bonds were scheduled to be priced in Europe this Tuesday, making it the busiest single-day issuance since tensions in the Middle East began.

Massive issuance wave, tech giants borrow to bet on AI

This issuance by Amazon continues the trend of large-scale debt financing by cloud computing and technology companies.

According to Bloomberg, only last month, Alphabet raised about $32 billion in the high-grade dollar and euro bond markets, and Oracle borrowed $25 billion in the US market.

Investors have shown strong interest in these issuances, with subscriptions typically several times the issuance sizes.

From a broader perspective, five companies—Amazon, Alphabet, Meta Platforms, Oracle, and Microsoft—are expected to have combined capital spending of about $650 billion in 2026.

By financing through the bond market, tech giants are able to maintain high-intensity investment without significantly diluting shareholders’ equity.

Tension between stock market doubts and bond market enthusiasm

Despite strong buying in the bond market, worries about AI investment returns in the stock market are rising.

Amazon's 2026 capital spending plan of about $200 billion announced last month exceeded analyst expectations, triggering skepticism among some equity investors about the rapid pace of expenditure and the uncertainty of monetization cycles.

Whether this bond issuance is sufficiently subscribed and its final pricing will to some extent directly reflect market confidence in the logic of tech giants' AI investments.

Risk Warning and DisclaimerThe market carries risks and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular circumstances. Investments based on this are at your own risk. ```