--- title: "The arms race among tech giants has intensified! Amazon has entered the Swiss franc bond market for the first time, fully ramping up its investment in AI" type: "News" locale: "en" url: "https://longbridge.com/en/news/285932092.md" description: "Amazon plans to issue Swiss franc bonds for the first time to raise capital expenditures for artificial intelligence. The company has entrusted BNP Paribas, Deutsche Bank, and JP Morgan with the issuance of six tranches of bonds, with maturities ranging from 3 to 25 years. Analysts point out that there is stable demand in the Swiss market for high-rated issuers, and Amazon's capital expenditure plan is expected to reach $200 billion, reflecting the fierce competition among tech giants in the AI field" datetime: "2026-05-11T11:22:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285932092.md) - [en](https://longbridge.com/en/news/285932092.md) - [zh-HK](https://longbridge.com/zh-HK/news/285932092.md) --- # The arms race among tech giants has intensified! Amazon has entered the Swiss franc bond market for the first time, fully ramping up its investment in AI According to Zhitong Finance APP, as major cloud service providers turn to new debt markets to raise capital expenditures for artificial intelligence (AI), Amazon (AMZN.US) has also joined this trend. According to insiders, Amazon is preparing to issue Swiss franc bonds for the first time. The company has entrusted BNP Paribas, Deutsche Bank, and JP Morgan to issue six tranches of Swiss franc bonds with maturities ranging from 3 to 25 years. Regarding Amazon's choice to issue Swiss franc bonds, Apostolos Bantis, Managing Director of Fixed Income at Union Bancaire Privee UBP SA, pointed out: "The Swiss market still maintains stable demand for high-rated issuers, while investors have a strong subscription interest in well-known American corporate issuers." He added, "Issuing bonds with multiple maturities at once allows borrowers to reach different types of investors, raise more funds, and keep the issuance discount at a lower level while the market window is still open." ## AI Arms Race Drives Bond Issuance Frenzy Currently, the explosive growth in computing power demand driven by AI has pushed tech giants into an AI arms race of "invest or be left out." Data shows that the capital expenditure scale of Amazon, Microsoft (MSFT.US), Meta (META.US), and Google (GOOGL.US) has risen to $725 billion this year—mainly for AI data center equipment, exceeding the market expectation of $670 billion before the financial reports of these tech giants were released. Against the backdrop of sustained AI demand and rising costs for chips and data centers, major tech companies have not signaled a reduction in investment but have instead further raised their capital expenditure expectations. Among them, Amazon announced an annual capital expenditure plan of $200 billion, an increase of over 50% compared to approximately $131 billion in capital expenditure in 2025. Additionally, Google stated during its earnings call that it expects its total capital expenditure for 2026 to be between $180 billion and $190 billion, with both the upper and lower limits raised by $5 billion from previous estimates. The company also expects a "significant increase" in capital expenditure for 2027. Microsoft similarly stated during its earnings call that it expects capital expenditure to reach $190 billion in 2026, a figure far exceeding the market average expectation of $117.5 billion. Meta has also raised its capital expenditure expectation for 2026 to between $125 billion and $145 billion, with both the upper and lower limits increased by $10 billion from previous estimates. For these tech giants, the massive investment plans are rapidly consuming cash reserves, making it a necessary choice to turn to the debt market for financing. To raise substantial funds for AI infrastructure investments, these tech giants are seeking diversified financing beyond dollar bonds. According to Goldman Sachs, the issuance of euro, pound, and Swiss franc-denominated bonds by large-scale tech companies has significantly increased since 2024. Karl Schamotta, Chief Market Strategist at Corpay, analyzed that the current competition in the dollar bond market is becoming increasingly fierce, prompting companies to turn to markets outside the U.S. for financing, while also meeting global investors' demand for asset allocation in American AI companies It is reported that after Amazon issued a total of $37 billion in bonds with 11 different maturities in the U.S. bond market on March 10, the next day it issued €14.5 billion (approximately $16.8 billion at the day's exchange rate) in bonds in the euro market. The company also completed its first domestic bond issuance in the U.S. in three years last November, raising $15 billion. Google recently issued its largest euro-denominated bond ever and launched its first Canadian dollar-denominated bond, raising nearly $17 billion in total, further expanding its non-U.S. dollar financing. In fact, since last year, Google has raised a total of $86 billion, with nearly half of the funds coming from non-U.S. dollar currency financing. In February of this year, the company issued $20 billion in U.S. dollar bonds, setting a record for its largest U.S. dollar bond issuance, with peak subscription funds reaching $103 billion, far exceeding its fundraising target. Previously, the company also issued bonds denominated in British pounds and Swiss francs, continuously enriching its financing currency types. In addition, Oracle (ORCL.US) also issued $25 billion in U.S. dollar bonds in February. Meta submitted a $30 billion bond issuance plan last October for the expansion of AI infrastructure. Some data can directly indicate how massive the debt financing scale led by AI is. By the end of 2025 to early 2026, the total debt related to AI infrastructure has ballooned to approximately $1.2 trillion. In JP Morgan's U.S. High Liquidity Corporate Bond Index, the AI-related sector accounts for 14%, officially surpassing the U.S. banking sector to become the largest single-weight sector in the investment-grade bond market. Morgan Stanley estimates that these super-large technology companies may borrow up to $400 billion this year, far exceeding the $165 billion in 2025, which will drive the global issuance of high-rated bonds to a record $2.25 trillion this year. ## Investment Returns Remain a Concern; Bond Market Shows Signs of Fatigue While tech giants are issuing bonds on a large scale, despite the confidence of bond investors in the tech giants' AI investment logic based on bond market subscriptions, some bond investors have raised doubts about the pace of spending and the uncertainty of monetization cycles. Some investors pointed out that the current commercialization of AI is still limited, mainly relying on price increases in cloud services and corporate subscriptions, with extended return cycles. If AI returns fall short of expectations, large-scale debt maturities may trigger refinancing pressures, affecting both the bond and stock markets. Meanwhile, after such a massive AI debt frenzy, investors have begun to show signs of fatigue. A direct example is that Meta issued an investment-grade bond of up to $25 billion earlier this month, with a peak order book of about $96 billion. This number seems significant, but compared to the $30 billion bond issued by the same issuer last October, which attracted $125 billion in demand, it has clearly shrunk. Other signs include that an issuer related to SoftBank Group was forced to raise the issuance yield to complete financing due to insufficient demand. Investors are beginning to demand stronger protective clauses— including a "backing" from Google, which guarantees that rent for data centers will be paid even in the event of tenant defaults Some investors even directly refuse certain transactions. One investor stated that they abandoned a $14 billion bond from Oracle's Michigan data center, one reason being that the bond contained redemption clauses unfavorable to creditors. Robert Tipp, head of global bonds at PGIM Fixed Income, stated, "Ultimately, these companies are selling a large amount of debt, and they will have to pay a higher price to borrow money. The market is facing a wall of worry after corporate spreads have narrowed significantly to historical lows." John Servidea, global co-head of investment-grade debt capital markets at JP Morgan, said, "We are seeing what different investors value in these financings and how they assess risk and return. We see strong demand for these transactions, but as supply increases, we expect the terms and structures of deals to continue to evolve." More importantly, some analysts point out that this trillion-dollar "AI debt wave" is transferring systemic risk across sectors. On one hand, there is the risk of technological obsolescence. The biggest hidden danger facing bond market investors is "computing power becoming outdated." The pace of chip iteration is extremely fast (from H100 to B200 to the next generation architecture), and if existing GPU clusters are quickly eliminated, their asset lifespan may be far shorter than the 10-year or even 30-year debt they carry. On the other hand, risk is being transferred to the credit market. In the past, Silicon Valley's technological ventures were mainly funded by venture capital and equity shareholders. 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