Business · Companies · 15 hrs ago
Microsoft prices $25 billion bond sale as AI spending grows
Microsoft priced a $25 billion bond sale to raise money from investors.
The company says it will use the proceeds for general corporate needs, including capital spending.
The move comes as Microsoft invests heavily in AI data centres and has forecast about $175 billion in capital expenditure for 2026.
Three days before pricing the bonds, it offered voluntary exit packages to about 60,000 employees in eligible teams in India, the US, Canada and the UK.
Microsoft expects 3,000 or fewer employees to accept, according to a company spokesperson.
The bond sale drew orders of up to $115 billion, and its notes are due to close on November 4.
Microsoft says Azure demand exceeds available supply, and it plans to outline AI and cloud plans at its Ignite event from November 17 to 20.
Microsoft priced a $25 billion bond sale to fund general corporate purposes, including capital expenditure.
The offering is its first US investment-grade bond sale since 2017.
Microsoft said the notes are expected to close on November 4, 2026.
The sale comes as Microsoft’s spending on AI data centres grows and the company has forecast about $175 billion in capital expenditure for 2026.
Three days before the pricing, Microsoft offered voluntary exit packages to about 60,000 employees.
- Who
- Microsoft Corp.
- What
- It priced $25 billion in senior unsecured notes.
- When
- October 29, 2026.
- Where
- The US bond market.
- Why
- The proceeds are for general corporate purposes, which may include capital expenditure, working capital, stock repurchases, acquisitions and repayment of existing debt.
This story does not have two clearly opposing sides.
Microsoft announced voluntary exit packages for eligible employees in participating teams.
Microsoft announced the pricing of its $25 billion note offering.
The offering was expected to close.
- Bond sale
- $25 billion
- Offering date
- October 29, 2026
- Expected closing date
- November 4, 2026
- Note maturities
- 2028 to 2066
- 2026 capital expenditure forecast
- About $175 billion
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