GoKawiilMicrosoft to raise $25 billion in bonds to fund AI data center buildout
Microsoft announced a $25 billion bond offering, with proceeds slated for general corporate purposes including capital expenditures, acquisitions, buybacks and debt repayment. The company is targeting roughly $170 billion in 2026 capital spending to meet AI demand from clients like OpenAI and Anthropic, and expects the bond sale to close on November 4.
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The move shows Microsoft tapping its AAA credit rating to supplement cash flow rather than fund AI expansion solely through operations, a path also taken recently by Amazon, Alphabet and CoreWeave. CFO Amy Hood's comments suggest the company sees debt and leasing as complementary financing tools it has largely held in reserve, which could matter more if capital spending keeps climbing while rivals like Alphabet, Meta and Amazon report negative free cash flow.
- Microsoft plans to raise $25 billion in bonds, closing November 4
- 2026 capital expenditure target is about $170 billion, driven by AI demand
- Microsoft's positive free cash flow contrasts with negative figures at Alphabet, Meta and Amazon
Source: cnbc.com — Jordan Novet, 2026-10-30
Published there as: “Microsoft plans to raise $25 billion in debt as it pursues AI buildout”
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