Factbox-Tech companies tap debt markets to fund AI and cloud expansion

Core Insights - The world's largest technology companies are raising nearly $100 billion through bond offerings to enhance their artificial intelligence infrastructure, marking a shift from their traditional reliance on cash for investments [1][2]. Group 1: Investment Trends - Tech giants, including Amazon, Microsoft, Google, Oracle, and Meta, are expected to spend $400 billion on data centers, nearly doubling last year's investment, despite concerns over a potential AI bubble [2]. - Deutsche Bank projects that global AI-related investment could reach $4 trillion by 2030, driven by a strong demand to commercialize AI technology [3]. Group 2: Company-Specific Bond Offerings - Amazon plans to raise $15 billion through its first U.S. dollar bond sale in three years, with the offering attracting $80 billion in demand. Amazon's outstanding debt is $69.29 billion, and it has cash and cash equivalents of $66.92 billion [4]. - Oracle filed to raise approximately $18 billion in debt to fund AI infrastructure, with outstanding debt of $101.25 billion and cash and cash equivalents of $10.45 billion [5]. - Verizon aims to raise about $11 billion to finance its $20 billion acquisition of Frontier Communications, with outstanding debt of $139.62 billion and cash and cash equivalents of $7.71 billion [5]. - Alphabet filed to raise $17.50 billion in the U.S. and €6.5 billion ($7.49 billion) in Europe for general corporate purposes, including debt repayment. Its outstanding debt is $48.78 billion, with a cash balance of $23.09 billion [6]. - Meta Platforms is pursuing its largest bond offering of up to $30 billion to finance AI infrastructure expansion, amid significant cost pressures and increased capital expenditure [7].