3 min read4 sourcesBearish
AI-Related Debt Sells Off as Amazon Borrows Another $25 Billion
The corporate-bond side of the AI trade is starting to wobble. Credit spreads on tech and AI-related debt have widened as investors grow wary of the sheer volume of borrowing, with Amazon adding at least another $25 billion in bonds to fund its data-center buildout, on top of roughly $64 billion it has already raised in 2026. Demand for the new deal was far cooler than the frenzy that met Amazon's record bond earlier in the year, orders settled at about 1.6 times the size, and Oracle's default-risk gauge has crept wider, signs the market is starting to question whether the roughly $400-billion-a-year AI spending spree will pay off.
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