Amazon’s $150 Billion AI Capex Surge Could Force Its First Big Bond Deal In Years - Amazon.com (NASDAQ:AMZN)

Core Insights - Amazon.com Inc. may soon seek Wall Street's assistance for funding, marking its first major bond issuance since 2021 when it raised $18.5 billion for the MGM acquisition [1] - Despite having a strong balance sheet with approximately $84 billion in cash and marketable securities against $58 billion in debt, Amazon's liquidity may not suffice for the anticipated surge in AI and data center spending, projected to reach $150 billion by FY26 [2][3] - JPMorgan forecasts that Amazon's capital expenditures (capex) will nearly double from $78 billion in FY24 as it invests heavily in infrastructure to support AI demand, contributing to a broader industry capex nearing $450 billion [3] - The trend indicates a generational shift in funding strategies for Big Tech, with JPMorgan predicting $1.5 trillion in new investment-grade bonds over the next five years, highlighting a transition from self-funding to strategic leveraging [4] - A potential new bond deal for Amazon would not indicate weakness but rather reflect the substantial capital requirements driven by the AI boom, signaling a transformation in corporate finance practices [5]