# Microsoft plans $25 billion bond sale for infrastructure spending

> Microsoft plans to raise $25 billion in bonds as it targets $170 billion in 2026 capital spending, including to meet demand from AI customers.

Oossa · 2026-10-30 · https://oossa.com/en/microsoft-plans-25-billion-bond-sale-for-infrastructure-spending

Microsoft announced plans on Thursday to raise $25 billion by selling bonds, CNBC reports. The company says the offering is expected to close on Nov. 4. Microsoft has an AAA credit rating from S&P, which gives it access to borrowing on favorable terms, though the company did not disclose the bonds’ interest rates or maturities.

The fundraising comes as Microsoft targets $170 billion in capital spending in 2026. The company is expanding infrastructure to meet demand from AI labs including Anthropic and OpenAI, as well as other customers. The bond announcement is part of that wider spending push, but Microsoft has not said the money raised will go only to AI projects.

## Where could the money go?

Microsoft says it will use the net proceeds for general corporate purposes. Those could include working capital, capital spending, stock repurchases, acquisitions or repaying existing debt. That broad list means the bond sale supports the company’s finances overall; it does not identify a specific data center or project that the funds will pay for.

Chief financial officer Amy Hood said on Wednesday’s earnings call that Microsoft would use outside financing to complement cash flow when conditions were attractive. She said the company had already used leasing and had not yet tapped debt markets. The bond plan marks a move into that market, which Hood said Microsoft could access because of its credit ratings.

## How does Microsoft compare with other borrowers?

Microsoft reported positive free cash flow on Wednesday. That contrasted with Alphabet, which had negative free cash flow for a second consecutive quarter, as well as Meta last week and Amazon on Thursday. The companies are investing heavily in infrastructure, but Microsoft’s cash-flow figure does not show how much of its planned spending the bond sale will cover.

Other technology companies are also borrowing to fund expansion. Amazon and Alphabet have turned to bond markets this year, and AI-focused cloud provider CoreWeave has borrowed to expand its data center footprint. Oracle announced plans last week to raise $10 billion in debt and said it expects to return to positive free cash flow in the second half of its 2028 fiscal year. Meanwhile, investors have grown more cautious about large debt loads as central banks raise interest rates to fight inflation.

## The facts

- Microsoft plans to raise $25 billion through a bond offering expected to close Nov. 4.
- Microsoft has an AAA credit rating from S&P.
- Management is targeting $170 billion in capital expenditures for 2026.
- Microsoft says bond proceeds may go to general corporate purposes, including capital spending, stock repurchases and debt repayment.
- Microsoft reported positive free cash flow, while Alphabet had negative free cash flow for a second consecutive quarter.

## Why it matters

For Microsoft customers and AI companies such as OpenAI and Anthropic, the planned borrowing is one way Microsoft is financing infrastructure expansion to meet demand. The money is not earmarked solely for AI, and Microsoft has not said how much of its 2026 spending the offering will fund.

## Sources & references

1. [Microsoft plans to raise $25 billion in debt as it pursues AI buildout](https://www.cnbc.com/2026/10/29/microsoft-25-billion-debt-offering.html) – CNBC, 2026-10-30

Last updated: 2026-10-30