Microsoft announced on Thursday that it plans to issue $25 billion in bonds to support the expansion of its artificial intelligence computing infrastructure. The company is targeting $170 billion in capital expenditures in 2026, notably to meet demand from Anthropic, OpenAI and other customers. The proceeds may be used for working capital, capital expenditures, share repurchases, acquisitions or debt repayment, with the offerings expected to close on Nov. 4. Management is supplementing these resources with cash flow and leasing, while Amazon, Alphabet, CoreWeave and Meta face negative free cash flow or increased borrowing. Amazon, Alphabet and CoreWeave have also turned to the bond market this year to finance infrastructure projects as rising interest rates make investors more cautious about heavily indebted companies.
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