Microsoft plans US$25 billion bond sale to fund AI spending, Bloomberg reports
Microsoft is planning to raise at least US$25 billion through its first US investment-grade bond sale in over nine years, according to Bloomberg News. The funds will support the tech giant's artificial intelligence spending, with the bond sale managed by Wells Fargo, JPMorgan Chase and UBS.
Microsoft is planning to raise at least US$25 billion (HK$195 billion) through its first US investment-grade bond sale in more than nine years, Bloomberg News reported on Thursday, citing people familiar with the matter.
The bond sale would make Microsoft the latest tech giant to tap debt markets to fund its artificial intelligence (AI) spending spree, according to Bloomberg.
Microsoft is selling the debt in as many as 10 tranches, with maturities ranging from two to 40 years, Bloomberg reported, adding that no final decision has been made on the offering's size and that it may change according to demand.
Microsoft did not immediately respond to a Reuters request for comment.
Wells Fargo, JPMorgan Chase and UBS Group AG are managing the bond offering, Bloomberg reported.