In a landmark move for corporate finance, Amazon has launched one of the largest debt issuances on record. The tech giant is raising $37 billion through a U.S. dollar-denominated bond sale, with plans potentially to supplement this with a euro tranche of at least €10 billion. The capital raise is designed to pre-fund a substantial portion of a planned $200 billion investment program earmarked for artificial intelligence infrastructure in 2026. This aggressive financing strategy emerges even as internal reports surface linking AI-generated code to recent system failures.
Unprecedented Investor Appetite for Amazon Debt
Market observers were taken aback by the scale of the offering, which exceeded initial expectations of $25 to $30 billion. The final $37 billion issuance was split across eleven tranches with maturities ranging from two to fifty years. Investor demand proved overwhelming, with orders for the U.S. portion alone reaching approximately $126 billion. This represents one of the largest order books ever recorded for a corporate bond.
This debt sale ranks as the fourth-largest U.S. corporate bond issuance in history and stands as the biggest not associated with a merger or acquisition. By structuring debt across such extended maturities, including a 50-year bond, Amazon is aligning its financing with the long-lived nature of the data centers and AI hardware it intends to build.
The Dual Narrative of AI: Growth Engine and Emerging Risk
This colossal capital raise underscores Amazon’s deep commitment to dominating AI infrastructure. Its planned $200 billion in capital expenditures for 2026 surpasses most analyst forecasts. When combined with the announced investments from peers Alphabet, Meta, Oracle, and Microsoft, the total planned spending by major tech firms approaches $650 billion for this year.
However, on the very day of the bond issuance, an internal challenge came to light. According to a Financial Times report, Amazon is investigating whether AI-generated code modifications contributed to a series of system outages within its retail infrastructure. The company’s engineers reportedly convened a significant internal meeting to analyze these recent incidents. This suggests that deploying AI in software development introduces operational risks the company is still working to fully manage.
Should investors sell immediately? Or is it worth buying Amazon?
Subsidiary Zoox Accelerates Autonomous Vehicle Testing
In a parallel development, Amazon’s self-driving subsidiary Zoox is expanding its testing operations to include Dallas and Phoenix. This expansion brings its active testing footprint to ten U.S. cities, which also include Los Angeles, Miami, and Washington D.C. The rollout will begin with a fleet of modified Toyota Highlander SUVs, to be followed later by Zoox’s distinctive box-shaped robotaxis. To date, Zoox vehicles have logged over one million autonomous miles and transported more than 300,000 passengers.
The autonomous vehicle sector remains highly competitive. Waymo, a unit of Alphabet, currently holds a dominant position in the U.S. market, while Tesla is also an active participant. Amazon acquired Zoox in 2020 for $1.3 billion.
Market Skepticism Persists Despite Strategic Moves
Amazon’s equity performance tells a story of investor caution. Since the start of the year, the share price has declined by roughly five percent, trading well below its 52-week high of €220.55. Free cash flow dynamics are a key concern for the market: it fell from $47.7 billion in Q3 2024 to $11.2 billion in Q4 2025, a drop that mirrors the company’s elevated investment spending. Furthermore, Amazon Web Services (AWS) faces intensifying competitive pressure from Google Cloud and Microsoft Azure.
Adding to the long-term risk profile is an antitrust lawsuit filed by the Federal Trade Commission (FTC), scheduled for October 2026. Some observers believe the case could have profound consequences, potentially even leading to a mandated separation of Amazon’s fulfillment services.
While the record bond issuance secures the financial flexibility needed for Amazon’s ambitious infrastructure plans, the critical test for the stock will be whether these massive investments translate into sustainable cash flow growth in the coming quarters.
Ad
Amazon Stock: Buy or Sell?! New Amazon Analysis from March 11 delivers the answer:
The latest Amazon figures speak for themselves: Urgent action needed for Amazon investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from March 11.
Amazon: Buy or sell? Read more here...
