Amazon, Microsoft, Alphabet and Oracle Line Up More Than $131 Billion for AI Build-Out

The financings came close together, and they show that even the most profitable technology companies are turning to capital markets because capital spending on AI is rising faster than the cash their operations bring in.

Amazon's Secured Facility

Amazon disclosed the facility in its third-quarter 10-Q, filed on October 30, according to 24/7 Wall St. The filing lists it among supplier financing arrangements for buying technology infrastructure. Amazon can borrow at its discretion from the first quarter of 2027 through the third quarter of 2028, at variable rates. Each borrowing matures five years after it is drawn. Nothing has been drawn so far.

The facility is secured. Amazon said in the filing that it "will grant a security interest in certain purchased assets", so lenders would have a claim on some of the equipment it buys. The filing does not name the lender or say which assets are pledged, and an Amazon spokesperson declined to comment, 24/7 Wall St reported.

Amazon's own figures explain why it needs the money. Operating cash flow over the trailing twelve months rose 29% to $168.3 billion, but free cash flow was an outflow of $42.4 billion. Long-term debt reached $173.1 billion at September 30, up from $65.6 billion at the end of 2025. Chief executive Andy Jassy told analysts on October 29 that the company expects cash capital expenditure of about $220 billion in 2026, mostly for AWS, and plans to spend "meaningfully more" in 2027.

Microsoft, Oracle and Alphabet

Microsoft planned to raise about $25 billion in its first US investment-grade bond sale in more than nine years, two sources told Reuters on October 29. One of them said orders exceeded $100 billion. Bloomberg reported that the deal had up to 10 tranches with maturities of two to 40 years. Microsoft pointed Reuters to a regulatory filing that confirms the sale but does not give its size. Chief financial officer Amy Hood has said the company would seek more funding "when we believe it is attractive to do so."

Oracle is raising $20 billion through a combined sale of bonds and shares to fund its AI cloud expansion, Business Standard reported. Alphabet launched a €6 billion euro bond sale in seven tranches on Monday, and orders passed €17 billion, according to The Next Web. That deal came days after Alphabet's shares fell more than 12% in one session following its quarterly results.

Why It Matters

Investors are uneasy about how much companies are spending on AI. On Tuesday, European technology shares led the market lower as investors reassessed that spending. Earlier this week, Blackstone president Jon Gray argued that the build-out needs more equity because lenders' exposure is growing, and Pimco chief executive Emmanuel Roman warned that AI financing could become too much for markets to absorb.

So far, demand for the debt remains strong. Microsoft's order book reportedly ran to more than four times the deal size, and Alphabet's was close to three times. The structures are changing, though. Amazon's facility is secured against equipment rather than unsecured, and Oracle is selling shares alongside bonds. Both point to a market where even the largest borrowers are reaching for new sources of funding.

For Gulf readers, the rush matters because the same companies are anchor customers and partners for the region's data centre ambitions. How easily they can finance their spending will shape the timing of their projects abroad, as well as at home.