Amazon's $25B Bond Sale Gets $62B Demand, AI Debt Binge Is On

$AMZN priced a $25 billion investment-grade bond offering this week to fund its AI data center buildout, and Wall Street showed up like it was a Taylor Swift presale. The deal drew $62 billion in demand, making it more than 2.5x oversubscribed. Bloomberg Intelligence notes Amazon's capex is projected to surge from $200 billion to $300 billion by 2027, with data center construction, labor, and memory chip costs eating most of that budget.

This isn't a one-off. Google, SpaceX, Oracle, and Meta have all run similar mega debt deals recently, per CNBC's David Faber. The pattern is clear: hyperscalers are borrowing at scale to fund the AI arms race, and credit markets are begging to finance it. Amazon is expected to run negative free cash flow this year, which would normally spook investors. Right now? Nobody cares.

While chip stocks were getting demolished and Samsung was cratering 9%, the Mag 7 crowd was quietly consolidating as the smarter AI bet. Turns out investors would rather own the picks-and-shovels buyer than the shovel maker.