Microsoft Returns to Bond Market with $25B AI Debt Offering
Microsoft is returning to the US bond market for the first time since 2017, seeking at least $25 billion to fund its AI infrastructure expansion. Despite a stronger AAA rating, its long-term yields are pricing near Alphabet and Amazon, reflecting how hyperscalers' record $313 billion in investment-grade debt issuance this year is lifting borrowing costs across the sector.
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Rohan Paul (@rohanpaul_ai) · 2026-10-29 14
Bloomberg: Microsoft is returning to the US bond market for the first time since its 25B across up to 10 tranches.
Its 40-year note is priced near Alphabet’s and Amazon’s long bonds despite Microsoft’s stronger AAA rating, which suggests the flood of AI debt is lifting borrowing costs for everyone.
Hyperscalers and data center developers have sold more than $313B of investment-grade bonds this year, almost 3 times 2025’s total, pushing global bond sales to a record $6.61T.
