Microsoft eyes up to $25 billion in bonds to fund AI expansion
As seen on the 24/7 Wall St. homepage on October 29, 2026.
One of the most cash-rich companies in America borrowing up to $25 billion shows how fast AI data center bills are outrunning operating cash flow. How the deal prices signals investor appetite for Big Tech capex debt.
JUST IN: Microsoft eyes raising up to $25 billion from US bond sale
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Microsoft is eyeing a bond sale of up to $25 billion in the US debt market, a figure that underscores how aggressively the company is deploying capital into AI infrastructure. Even for one of the most cash-rich companies in America, the scale of that borrowing is notable.
The move signals that AI data center spending is outrunning what operating cash flow alone can comfortably cover. When a company of Microsoft's financial standing turns to the bond market at this size, it reflects both the urgency of the build-out and the sheer capital intensity of the AI race.
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How the deal prices matters as much as the deal itself: strong investor demand and tight spreads would confirm that the bond market is still willing to fund Big Tech's AI ambitions at favorable rates, while a weaker reception would raise questions about how much capex debt investors are prepared to absorb from this sector.
The offering is one to follow closely for anyone tracking the broader funding environment around AI infrastructure, since the terms Microsoft secures set a tone for similar debt raises across the industry.
Mentioned: MSFT