Following U.S. dollar and euro funding rounds, Amazon (AMZN) is preparing to issue Swiss franc bonds for the first time. The company has mandated BNP Paribas, Deutsche Bank, and JPMorgan to lead the offering of six-part Swiss franc bonds with maturities ranging from three to 25 years.
The explosive demand for computing power driven by AI has pushed tech giants into a race where “not investing means falling behind.” Data shows that Amazon, Microsoft (MSFT), Meta (META), and Google (GOOGL) will see their capital expenditures rise to $725 billion this year, primarily for AI data centers, exceeding the previously expected $670 billion. Among them, Amazon’s annual capital expenditure plan reaches $200 billion, an increase of more than 50% from approximately $131 billion in 2025; Google expects full-year capital spending in 2026 to be between $180 billion and $190 billion, with a “significant increase” projected for 2027; Microsoft expects capital spending of $190 billion in 2026, far exceeding the market average forecast of $117.5 billion; Meta has raised its 2026 capital expenditure forecast to between $125 billion and $145 billion. These massive investment plans are rapidly depleting cash reserves, prompting the giants to turn to the debt market.
Goldman Sachs data indicates that bond issuance in euros, pounds sterling, and Swiss francs by hyperscale tech companies has risen significantly since 2024. Karl Schamotta, Chief Market Strategist at Corpay, points out that competition in the U.S. dollar bond market is fierce, prompting companies to seek funding outside the United States while also meeting global investors’ demand for allocations to U.S. AI assets. Previously, on March 10, Amazon issued $37 billion in bonds in the U.S. bond market, followed by €14.5 billion in the euro market the next day. Google recently issued its largest-ever euro-denominated bond and introduced Canadian dollar-denominated bonds for the first time, raising a total of nearly $17 billion, and has accumulated $86 billion in funding since last year, nearly half of which came from non-U.S. dollar financing. Oracle (ORCL) also issued $25 billion in U.S. dollar bonds in February, and Meta submitted a $30 billion bond issuance plan last October for AI infrastructure. By the end of 2025 to early 2026, total debt related to AI infrastructure had swelled to approximately $1.2 trillion. Morgan Stanley estimates that total borrowing by hyperscale tech companies this year could reach as high as $400 billion, far above the $165 billion borrowed in 2025.
Despite strong subscription enthusiasm in the bond market, some investors have raised questions about the rapid pace of spending and the uncertain timeline for monetization. Currently, AI commercial monetization remains limited, mainly relying on cloud service price hikes and corporate subscriptions, lengthening the return cycle. If returns fall short of expectations, large-scale debt maturities could trigger refinancing pressures. Meanwhile, investor fatigue is becoming evident. Earlier this month, Meta issued up to $25 billion in bonds, attracting peak orders of approximately $96 billion, a notable contraction from the $125 billion in demand seen for its $30 billion bond issuance last October.
