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Microsoft launches 10-part bond offering seeking at least $25 billion for AI buildout

Microsoft has launched a 10-part US dollar investment-grade bond offering aiming to raise at least $25 billion, marking its first bond sale since 2017 as it funds surging artificial intelligence capital expenditures.

A large Microsoft logo displayed on an architectural structure atop a modern office building.
Image: @StockMKTNewz

Microsoft kicked off a 10-part US dollar high-grade bond offering looking to raise at least $25 billion, according to market reports. The jumbo debt sale marks the company's first major bond offering since 2017, when it issued $17 billion in debt.[1][2][4][5][7][12][14]

According to Bloomberg, the debt sale joins a broader borrowing spree across big tech to fund the ongoing artificial intelligence investment boom. The bonds are structured with maturities spanning from 2 to 40 years, with proceeds designated for general corporate purposes, including capital expenditures.[1][3][5][8][10][11]

The transaction drew blowout investor interest, pulling in roughly $100 billion in bids according to Mint. The strong demand comes even as investors navigate a heavy supply of tech debt and show increasing selectivity regarding AI-driven borrowing sprees.[6][9][13]

Key facts

  • Microsoft launched a 10-part US dollar high-grade bond offering seeking to raise at least $25 billion.
  • The transaction marks Microsoft's first bond offering since 2017, when it raised $17 billion.
  • The bonds are slated to have maturities ranging from 2 to 40 years.
  • Proceeds are intended for general corporate purposes, including funding AI capital expenditures.
  • The bond sale attracted around $100 billion in order bids, according to Mint.

Sources · 12 sources

  1. WS

    Wall St Engine@wallstenginePost on X ·

    MICROSOFT PREPARES AT LEAST $25 BILLION BOND SALE, ITS FIRST SINCE 2017 $MSFT is looking to raise at least $25B through a 10-part U.S. bond offering, as it joins other major tech companies tapping debt markets to finance the AI infrastructure buildout. The offering would mark Microsoft's first major bond sale in nine years, when it raised $17B in 2017. Despite holding a rare AAA credit rating and generating substantial cash flow, Microsoft had remained on the sidelines while Alphabet, Amazon and Meta turned to large bond offerings over the past year. The bonds are expected to have maturities ranging from 2 to 40 years, with proceeds available for general corporate purposes, including capital expenditures. The move follows Microsoft's fiscal Q1 earnings yesterday and comes just months after Alphabet raised $25B in its August bond sale.

    Open source
  2. EV

    Evan@StockMKTNewzPost on X ·

    MICROSOFT $MSFT LAUNCHES 10-PART 🇺🇸 DOLLAR BOND OFFERING MICROSOFT LOOKS TO RAISE AT LEAST $25 BILLION FROM US BOND SALE https://t.co/61973zQGvl

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  3. BL

    Bloomberg@businessPost on X ·

    Microsoft Corp. is selling high-grade bonds for the first time in more than nine years, joining rivals in a borrowing spree to fund the artificial intelligence investment boom. https://t.co/yNEHxTc9HH

    Open source
  4. UW

    unusual_whales@unusual_whalesPost on X ·

    BREAKING: Microsoft $MSFT is looking to raise at least $25 billion in its first bond sale since 2017 The last time Microsoft tapped the bond market was a $17 billion sale in January 2017, months after borrowing nearly $20 billion to buy LinkedIn.

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  5. TE

    Techmeme@TechmemePost on X ·

    Sources: Microsoft is seeking to raise $25B+ in its first US investment-grade bond sale since 2017, when it raised $17B, to fund AI-related capital expenditures (Bloomberg) (Visit Techmeme dot com for the link and full context!)

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  6. MA

    MarketWatch@MarketWatchPost on X ·

    Microsoft to raise up to $25 billion in bond market as investors get pickier about AI debt binge https://t.co/R6U2wpvtBI

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  7. *B

    *Walter Bloomberg@DeItaonePost on X ·

    MICROSOFT KICKS OFF 10-PART USD HIGH-GRADE BOND OFFERING

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  8. BA

    Barron's@barronsonlinePost on X ·

    Microsoft held a mega bond sale to raise capital, finally joining its rivals in issuing debt for the AI buildout. https://t.co/Qxj8SC3LoP

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  9. MI

    Mint@livemintPost on X ·

    Microsoft's $25 billion AI bond sale attracts $100 billion in bids: Why is it turning to debt despite its cash pile? https://t.co/CpRt5GumzE

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  10. CN

    CNBC@CNBCPost on X ·

    Microsoft plans to raise $25 billion in debt as it pursues AI buildout https://t.co/LLx75x9hRa

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  11. TK

    The Kobeissi Letter@KobeissiLetterPost on X ·

    BREAKING: Microsoft, $MSFT, is launching a 10-part high-grade bond offering for the first time since 2017 to help fund its massive AI investments, per Bloomberg. The bonds will have maturities ranging from 2 to 40 years, with proceeds used for general corporate purposes, including capital expenditures. AI-related borrowing continues to surge.

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  12. WS

    Wall St Engine@wallstenginePost on X ·

    MICROSOFT $MSFT LAUNCHES 10-PART U.S. DOLLAR BOND OFFERING

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  13. TE

    TechmemeArticle ·

    Sources: Microsoft is seeking to raise $25B+ in its first US investment-grade bond sale since 2017, when it raised $17B, to fund AI-related capital expenditures (Bloomberg) Bloomberg : Sources: Microsoft is seeking to raise $25B+ in its first US investment-grade bond sale since 2017, when it raised $17B, to fund AI-related capital expenditures — Microsoft Corp. drew blowout demand for its jumbo bond offering, as investors made room in portfolios stuffed with AI-related debt …

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  14. *B

    *Walter Bloomberg@DeItaonePost on X ·

    MICROSOFT LOOKS TO RAISE AT LEAST $25 BILLION FROM US BOND SALE

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