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

July 7 (Reuters) - The world's largest exertion companies are tapping indebtedness markets and raising equity to bolster AI infrastructure, marking a displacement for Silicon Valley firms that typically relied connected currency to money their investments.

Alphabet, Amazon, Microsoft and Meta signaled successful April that spending connected AI would not dilatory down. Tech giants' combined spending is present acceptable ‌to transcend $700 cardinal this year, up from astir $600 cardinal previously.

The AI roar has entered a "more unsafe phase," marked by exponentially rising investments successful carnal infrastructure and increasing reliance connected extracurricular capital, ‌according to an investigation by Bridgewater Associates successful February.

AMAZON

Amazon.com is looking to rise astatine slightest $25 cardinal from the U.S. enslaved market, Bloomberg News reported, citing radical acquainted with the matter.

The tech elephantine filed for an eight-part offering of floating and fixed-rate notes, ​according to a regulatory filing. Amazon is issuing elder unsecured bonds, with maturities ranging from 3 to 40 years, arsenic per a word expanse seen by Reuters.

In June, the institution disclosed successful a regulatory filing that it has issued C$14 cardinal of Canadian dollar-denominated notes, marking a grounds size for the Canadian firm enslaved market.

It is besides preparing to contented a six-part enslaved offering successful Swiss franc denomination for the archetypal time, a idiosyncratic acquainted with the substance had told Reuters successful May.

Separately, the e-commerce elephantine is looking to rise astir $37 cardinal successful an 11-part enslaved sale, according to a word expanse seen by Reuters successful March.

Particulars Value

Debt outstanding $132.22 cardinal

Cash and currency ‌equivalents $104.69 cardinal

Next enslaved outgo $2 cardinal owed connected April 13,

2027

NVIDIA

Nvidia said successful June ⁠it would rise $25 cardinal done a U.S. enslaved issuance, arsenic it taps the indebtedness marketplace to summation liquidity for the archetypal clip since 2021.

The enslaved consists of 7 tranches of notes, maturing arsenic precocious arsenic 2056, according to a word expanse seen by Reuters.

Particulars Value

Debt outstanding $33.50 cardinal

Cash and currency equivalents $13.24 cardinal

Next enslaved outgo $1 cardinal owed ⁠on September

16, 2026

SALESFORCE

Cloud bundle supplier Salesforce said successful March it has priced a $25 cardinal indebtedness offering to assistance money a large stock buyback. The institution announced a $50 cardinal repurchase programme and lifted its dividend by 5.8% successful February.

The institution had past issued U.S. bonds successful 2021, securing $8 cardinal to enactment its acquisition of connection level Slack.

Particulars Value

Debt outstanding $33.50 cardinal