Microsoft weighs $25 billion bond sale as AI spending reshapes Big Tech funding

Microsoft is planning to raise about $25 billion through a U.S. investment-grade bond offering, two people familiar with the matter told Reuters. If completed at that size, the transaction would be the company’s first U.S. investment-grade bond sale in more than nine years.

A large but not-yet-final offering

The reported figure remains an estimate rather than a finalized deal size. Reuters said the offering had drawn more than $100 billion in orders, or more than four times the proposed amount, according to one of the sources, who requested anonymity because the matter was confidential. The size could change with investor demand.

The debt is being marketed in as many as 10 tranches, with maturities reported to range from two years to 40 years. Wells Fargo, JPMorgan Chase and UBS are managing the offering, according to the report. UBS and Wells Fargo declined Reuters’ requests for comment, while Microsoft directed the news agency to a regulatory filing that confirms the bond sale but does not disclose its size.

Funding flexibility in focus

The report followed comments from Chief Financial Officer Amy Hood on Microsoft’s earnings call the previous day. Hood said the company would pursue additional sources of funding “when we believe it is attractive to do so,” citing the importance of preserving cash flow and financial flexibility. That comment does not, by itself, establish the final terms or intended use of proceeds for this offering.

Microsoft’s latest annual report says fiscal 2026 revenue reached $331.8 billion, up 18% from the prior year, while Microsoft Cloud revenue rose 27% to $214.4 billion. The report also says Azure growth was 41% and that Azure exceeded $100 billion in revenue for the first time. Those figures provide scale for the company’s infrastructure and cloud business, but they do not prove that the proposed bonds will fund any particular project.

Broader technology-debt market

Reuters described the transaction as part of a wider shift among large technology companies toward bond and equity markets to help finance heavy artificial-intelligence and data-center investment. Microsoft, however, expects to keep generating positive free cash flow in the fiscal year ending June 2027, according to the report. The expected sale therefore remains a financing decision under development, not evidence that the company has exhausted its cash resources.

Sources

• Reuters report — Reported size, sources, order demand, tranches, managers and CFO comments.
• Reuters-syndicated copy — Corroborates the report’s published details and attribution.
• Microsoft fiscal 2026 annual report — Official revenue, Microsoft Cloud and Azure figures.
• Microsoft Investor Relations FAQ — Official fiscal-year and credit-rating context.