The four largest cloud operators have turned to the capital markets together. Amazon, Microsoft, Alphabet and Oracle have disclosed funding plans totalling more than 131 billion dollars in the past week, all of it tied to the cost of building AI data centres, servers and networking, Datacenter Dynamics reported on Tuesday.
The newest piece is Oracle’s. On Monday the company launched a combined 20 billion dollar raise, 10 billion dollars of common stock under a Form 424B5 prospectus supplement and 10 billion dollars of floating rate senior notes under a concurrent Form 424B2, both filed with the SEC on November 2. Oracle said the proceeds would be used for general corporate purposes, which may include capital expenditures, repayment of indebtedness, future investments or acquisitions, and dividends or share repurchases. The offering completes the 40 billion dollars of debt and equity Oracle had said it expected to raise in its fiscal 2027, after a 20 billion dollar equity issuance completed in the first quarter. Oracle’s own capital spending guide, at 90 billion to 95 billion dollars for the full year, remains well below its larger rivals.
Amazon carries the largest single facility. An SEC filing describes a supplier financing arrangement for technology infrastructure purchases of up to approximately 80 billion dollars, drawable between the first quarter of 2027 and the third quarter of 2028, with borrowings maturing five years from each draw and priced at variable rates. As of September 30 Amazon also held 20 billion dollars of unsecured revolving credit facilities. Amazon spent more than 77 billion dollars on data centres, AI servers, warehouses and other capital items in its most recent quarter, and continues to guide to about 220 billion dollars for the full year.
Microsoft’s 25 billion dollar notes offering, priced at coupons between 4.85 percent and 6.35 percent and expected to close on November 4, and Alphabet’s 6 billion euro note offering, at rates between 3.7 percent and 5.25 percent, were each reported in this publication on November 2. Microsoft spent 45.2 billion dollars on capital items in its latest quarter and now projects 170 billion dollars for 2027, trimmed from 175 billion dollars. Alphabet spent 51.36 billion dollars in its latest quarter and held guidance for up to 205 billion dollars in 2027 and 300 billion dollars in 2028.
The reception is the story underneath the size. These are investment grade borrowers issuing into a market that has begun to price AI spending risk at the weaker end of the complex: CoreWeave’s bonds, issued at 9.67 percent, have traded to yields near 15 percent, a level the Financial Times has called distressed, and Fortune has reported that funding conditions for smaller AI borrowers are tightening. Whether the hyperscalers’ own paper continues to clear at tight spreads while their capital spending runs ahead of AI revenue is now the central financing question of the buildout.