Amazon issues record-setting Canadian dollar-denominated corporate bond deal - BNN Bloomberg

Amazon has just executed a record-setting C$14 billion (US$10 billion) Canadian dollar-denominated corporate bond deal, marking the largest offering of its kind in Canadian history. This unprecedented move primarily aims to fuel the tech giant's insatiable demand for Artificial Intelligence (AI) infrastructure, underpinning a global borrowing spree by hyperscalers scrambling for capital. The deal, which drew an overwhelming C$28 billion in investor orders, highlights the intense market confidence in Amazon long-term growth trajectory driven by AI, allowing the company to tighten pricing on its longest-dated tranches. This Canadian issuance is merely the latest stop on a worldwide debt tour that has seen Amazon raise over US$70 billion since early 2025 across multiple currencies, including euros and Swiss francs, as it anticipates spending close to US$200 billion this year alone on data centers, chips, and related AI infrastructure. The broader trend sees major tech firms, often referred to as 'hyperscalers,' collectively seeking trillions in capital to cement their lead in the AI arms race, with Canada's 'maple bond' market offering attractive borrowing costs and robust investor appetite. With Amazon latest debt push and Bloomberg Intelligence analysts forecasting an even higher AI investment trajectory for 2027, the focus now shifts to how effectively these massive capital injections translate into tangible AI advancements and market dominance. The aggressive global debt issuance by tech titans suggests a sustained period of high capital expenditure, making future bond offerings and their reception by diverse international markets a critical indicator for the pace of AI development and the financial health of the sector.