Amazon Is Spending So Much on AI That Even Its Cash Isn’t Enough. Why Investors Shouldn’t Be Worried. Jabran Kundi Sat, July 11, 2026 at 9:45 AM PDT 5 min read AMZN Amazon (AMZN) is heading back to the bond market, this time looking to raise at least $25 billion. The plan, revealed in an SEC filing, splits the debt into eight parts that mature between three and 40 years. Officially, the money is for general corporate purposes, including debt repayment and funding investments. In reality, it's all about feeding Amazon's AI infrastructure. Barclays, Goldman Sachs, JP Morgan, and Morgan Stanley are running the deal, with Amazon signaling this to be its last debt raise of the year. The numbers behind Amazon's AI push explain the reason it needs the cash. The company plans to spend roughly $200 billion in 2026, a big jump from $131 billion in 2025. Even for a company as cash-rich as Amazon, spending on this scale is hard to fund from cash alone. Prior to this, Amazon had already raised around $54 billion in the U.S. and Europe, along with another $10 billion in Canada. CEO Andy Jassy has defended the heavy spending, calling AI a once-in-a-lifetime opportunity that's worth betting big on. More News from Barchart 'Shark Tank' Star Kevin O'Leary 'Can't Stand It' When Young People Spend $28 on Lunch But Only Make $70k 'I Mean, That's Just Stupid' Broadcom Lands $30 Billion Chip Deal With Apple. Why It's a Win-Win for AAPL and AVGO. Intel Future Price Hikes Send Huge Demand Signal to Wall Street Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Amazon isn't alone in this. Tech giants, including Alphabet (GOOG) (GOOGL), Meta Platforms (META), and Nvidia Corporation (NVDA), have all rushed to borrow for the same reason. As a result, the global debt related to AI is now around $335 billion this year, more than double last year's total. Combined, these hyperscalers could spend over $700 billion on AI in 2026. While the demand for this debt has been strong, concerns about whether all this spending will actually pay off are starting to mount. About Amazon Stock Amazon is a technology and e-commerce company operating across online retail, digital advertising, cloud computing, and entertainment. Its products and services include its e-commerce marketplace, Amazon Web Services, Alexa, and Prime Video. Founded in 1994, the company is headquartered in Seattle, Washington and led by Jassy. Year-to-date (YTD), Amazon's stock has been up 8.95%, almost in line with the S&P 500 Index's ($SPX) 10.2% gain during the same period. From late March to early May, the stock surged dramatically by 40%. However, the company's plans to invest roughly $200 billion in 2026 have kept investors concerned about the near-term returns. The investment is primarily aimed at AI infrastructure and data centers, which is what the recent bond sale will help fund. Story Continues www.barchart.com Amazon's valuation looks fair given the strength and...
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