Amazon has raised £4.25 billion, or about $5.76 billion, in its first-ever sterling bond sale. The major debt deal shows how large technology companies are looking for new ways to raise money as spending on artificial intelligence (AI) infrastructure continues to grow.
Amazon’s four-part bond sale attracted more than £10.65 billion in investor orders, according to a lead manager. The strong demand allowed Amazon to raise slightly more than initially expected.
Amazon’s First Sterling Bond Sale
The company issued bonds with four different maturities. Amazon raised £1.25 billion from a three-year bond, while £1 billion was raised through each of the six-year, 12-year and 19-year bonds.
Yields ranged from around 5.2% for the three-year bond to 6.7% for the 19-year bond. The different maturities allow Amazon to spread its borrowing requirements over a longer period.
Sterling is the latest currency Amazon has used to access international debt markets. The company has previously issued bonds in euros, Swiss francs and Canadian dollars.
AI Spending Drives Big Tech Borrowing
Amazon’s bond sale comes as major technology companies, known as hyperscalers, are borrowing heavily to fund their AI expansion. These companies are investing billions of dollars in data centers, advanced chips, cloud infrastructure and other AI technologies.
According to LSEG data, hyperscalers have issued more than $200 billion in debt this year, more than double the amount issued during all of 2025.
Alphabet, Google’s parent company, was the first major hyperscaler to enter the sterling bond market this year. It raised £5.5 billion in February.
However, Amazon’s investor demand was weaker compared with Alphabet’s deal. Investors placed about 2.5 times the amount Amazon planned to raise, compared with roughly five times demand for Alphabet’s offering.
Investor Demand Faces Pressure
The lower demand highlights growing concerns about the amount of debt being issued by major technology companies. Analysts say the rapid increase in borrowing could put pressure on bond markets and increase financing costs.
For Amazon, however, the sterling bond sale provides another funding source as the company continues investing heavily in AI and cloud infrastructure.
