Amazon.com Inc. confirmed it is raising $15 billion in a bond sale, its first major return to the US high-grade debt market since 2022. The proceeds from the issuance are earmarked for capital-intensive projects, primarily the expansion of its artificial intelligence and cloud infrastructure for Amazon Web Services (AWS). This move is part of a broader trend among major technology companies using debt to finance the costly development of advanced AI capabilities. The market reacted with apprehension to the scale of the new debt, contributing to a significant stock price decline. Amazon's shares dropped over 4% as investors weighed the implications of increased leverage and the substantial costs associated with the AI arms race. The stock's slide reflects growing investor skepticism about the profitability of massive AI expenditures across the tech sector.
Amazon Stock Declines Following Confirmation of $15 Billion Bond Sale for AI Expansion
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