Aug 6 (Reuters) – The world’s largest technology companies are tapping debt markets and raising equity to bolster AI infrastructure, marking a shift for Silicon Valley firms that typically relied on cash to fund their investments.
Alphabet, Amazon, Microsoft and Meta signaled in April that spending on AI would not slow down. Tech giants’ combined spending is now set to exceed $730 billion this year, up from about $700 billion previously.
The AI boom has entered a “more dangerous phase,” marked by exponentially rising investments in physical infrastructure and growing reliance on outside capital, according to an analysis by Bridgewater Associates in February.
AMAZON
Amazon.com is looking to raise at least $25 billion from the U.S. bond market, Bloomberg News reported in July, citing people familiar with the matter.
The tech giant filed for an eight-part offering of floating and fixed-rate notes, according to a regulatory filing. Amazon is issuing senior unsecured bonds, with maturities ranging from three to 40 years, as per a term sheet seen by Reuters.
In June, the company disclosed in a regulatory filing that it has issued C$14 billion of Canadian dollar-denominated notes, marking a record size for the Canadian corporate bond market.
It is also preparing to issue a six-part bond offering in Swiss franc denomination for the first time, a person familiar with the matter had told Reuters in May.
Separately, the e-commerce giant is looking to raise about $37 billion in an 11-part bond sale, according to a term sheet seen by Reuters in March.
Particulars Value
Debt outstanding $157.51 billion
Cash and cash equivalents $78.21 billion
Next bond payment $2 billion due on April 13,
2027
NVIDIA
Nvidia in June said it would raise $25 billion through a U.S. bond issuance, as it taps the debt market to increase liquidity for the first time since 2021.
The bond consists of seven tranches of notes, maturing as late as 2056, according to a term sheet seen by Reuters.
Particulars Value
Debt outstanding $33.50 billion
Cash and cash equivalents $13.24 billion
Next bond payment $1 billion due on September
16, 2026
SALESFORCE
Cloud software provider Salesforce in March said it has priced a $25 billion debt offering to help fund a major share buyback. The company announced a $50 billion repurchase program and lifted its dividend by 5.8% in February.
The company had last issued U.S. bonds in 2021, securing $8 billion to support its acquisition of communication platform Slack.
Particulars Value
Debt outstanding $33.50 billion
