Microsoft returns to the bond market after nine years with at least $25 billion sale to fund AI build-out

US Technology · Nov. 1, 2026 · Microsoft sold at least $25 billion of dollar-denominated bonds on October 29, Bloomberg reported, its first major US investment-grade bond sale since 2017, when it raised $17 billion. Managed by JPMorgan, UBS and Wells Fargo, the offering spans up to ten tranches with maturities from two to 40 years; the longest-dated notes, due in 2066, were priced at 1.05 percentage points above comparable US Treasuries, and orders topped $115 billion, more than four times the amount offered.

AI spending drives the financing need

The backdrop is surging AI infrastructure spending. Microsoft spent $45.2 billion on capital expenditures in the quarter ended in September, while Azure revenue grew 48% year on year to $33.2 billion, beating the 44% analysts had expected. Chief Financial Officer Amy Hood told the October 28 earnings call that additional financing would supplement cash generated by the business and preserve financial flexibility when financing terms were attractive. Investment-grade bond sales by hyperscalers and data-centre developers worldwide have topped $313 billion in 2026, nearly triple the 2025 total.

General purposes, not AI only, and a top credit rating

The proceeds are for general corporate purposes, including capital expenditure, working capital, acquisitions, share repurchases and repayment of existing debt; Microsoft has not said the whole offering will go to AI investment. Microsoft holds AAA ratings from both Moody's and S&P Global, one of only two US-listed companies to do so, which helps it borrow large sums on favourable terms. Alphabet, another hyperscaler, issued a similarly structured $25 billion bond sale in August.