Amazon Plans First-Ever Sterling Bond Sale as AI Funding Needs Grow
Amazon has hired banks to arrange its first-ever sterling bond sale, as major technology companies increasingly turn to international debt markets to fund the massive costs associated with the artificial intelligence boom. According to a bank memo seen by Reuters, the company is considering issuing bonds with maturities of three, six, 12 and 19 years.
The transaction could launch as early as Wednesday, subject to market conditions, although Amazon has not disclosed how much it intends to raise. The move comes as hyperscalers expand their borrowing into currencies including euros, Swiss francs, yen and sterling to diversify funding sources amid rapidly rising capital requirements for AI infrastructure.
Amazon’s planned sterling issuance follows Alphabet, Google’s parent company, which raised £5.5 billion ($7.44 billion) through a five-part sterling bond deal in February, including a rare 100-year bond. The growing wave of international debt issuance reflects the enormous financing demands of the AI race, while also raising concerns that investor capacity—particularly in the U.S. dollar bond market—is being stretched.
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