00:00Amazon has kicked off a potentially record-setting corporate bond sale, tapping debt markets to fuel its AI ambitions.
00:06Let's get over to Bloomberg Tech co-host Ed Ludlow.
00:09Ed, it's remarkable that in the midst of volatile markets, Amazon is going for it a potentially $40 billion plus
00:15offering across dollars and euros.
00:18Yeah, we've seen a wave of AI-related offerings, particularly from the hyperscalers.
00:22But, you know, the Amazon one is size large.
00:24Basically, the offering targeting $37 to $42 billion in dollar terms.
00:29But in dollar-denominated and euro-denominated bonds in the U.S. market, 11 tranches of high-grade bonds, raising
00:36between $25 to $30 billion.
00:38That doesn't seem set.
00:39Maturities, two to 50 years.
00:41I think that includes a 2076 bond, about 1.55% above Treasuries.
00:47And then in European markets, where it's making a debut, it's targeting as much as €10 billion, eight-part debut.
00:55Maturities, two to 38 years.
00:56The point is capital expenditures just this year alone, $650 billion across the hyperscalers.
01:03There is an insatiable appetite for it.
01:05It would appear from the market.
01:08You know, Amazon, I think, tapped the debt markets in November at a smaller scale.
01:13But think about what we've seen from Alphabet most recently, Oracle as well, and how calm investors are about the
01:19idea that even an Amazon might swing into negative free cash flow at some point in the year.
01:24Because they want to see them fund the CapEx expansion and go after the AI gang.
01:29Bye.
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