Amazon Plans First-Ever Sterling Bond Sale as AI Funding Needs Grow

Amazon has hired banks for its first-ever sterling bond sale, according to a memo seen by Reuters, as major technology companies increasingly tap global debt markets to fund the surge in spending driven by artificial intelligence. The company is considering three-year, six-year, 12-year and 19-year bonds, with the transaction potentially launching as early as Wednesday, subject to market conditions.

The memo did not disclose how much Amazon plans to raise. The move comes as hyperscalers increasingly diversify their financing beyond the U.S. dollar market, issuing debt in currencies including euros, Swiss francs and yen to meet the substantial capital requirements of the AI boom. Rising issuance has also raised concerns among some investors about the ability of markets to absorb the growing supply of corporate debt.

Amazon’s planned sterling offering follows Alphabet’s £5.5 billion bond sale in February, which comprised five tranches and included a rare 100-year bond. The growing use of international bond markets by major technology companies highlights the scale of funding required to expand AI infrastructure and related computing capacity.

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