Microsoft is planning to raise about $25 billion in a US bond sale — its first US investment-grade bond offering in more than nine years — as the AI buildout pushes even the richest tech companies toward debt markets. Why it matters: Microsoft has historically funded itself from its own cash. Borrowing at this scale is a marker of how expensive the AI race has become.
October 29, 2026
What happened
Microsoft is planning to raise about $25 billion through a US investment-grade bond sale, a source familiar with the matter told Reuters on Thursday. Bloomberg News first reported the offering. Microsoft pointed Reuters to a regulatory filing that confirms a bond sale is happening, without disclosing its size — so treat the $25 billion figure as the reported plan, not a final number. Bloomberg reported no final decision has been made on the size and that it may change according to demand.
The details
According to the reporting, Microsoft is selling the debt in as many as 10 tranches, with maturities ranging from two years to 40 years. Wells Fargo, JPMorgan Chase and UBS Group are managing the offering; UBS and Wells Fargo declined to comment to Reuters, and JPMorgan did not immediately respond. Microsoft shares fell about 1.2% in afternoon trading on Thursday.
The timing is not subtle. The report comes one day after Microsoft CFO Amy Hood told investors on the company’s earnings call that Microsoft would pursue additional sources of funding “when we believe it is attractive to do so,” citing the need to preserve its cash flows and financial flexibility. The company issued an upbeat current-quarter cloud sales outlook after hours on Wednesday.
Why even Microsoft is borrowing
For most of their history, the largest tech firms funded investment from enormous cash piles. Over the past year, Reuters notes, they have shifted to selling bonds and raising equity to pay for the AI spending spree — data centers, chips and power are simply that capital-hungry. Microsoft is arguably borrowing from strength: it expects to keep generating positive free cash flow in its current fiscal year, which runs through June 2027, making it a standout among hyperscaler peers that have started burning cash on the buildout. Alphabet burned $9.07 billion in the third quarter, and Meta recently posted its first cash burn in more than a decade.
Why it matters
For subscribers, the takeaway is about the shape of the AI economy, not one bond deal. When a company with Microsoft’s balance sheet chooses debt over cash, it signals two things at once: management expects AI demand — Azure grew 48% in the quarter just reported — to keep outrunning supply for years, and it would rather keep its cash flexible than drain it into concrete and GPUs. The risk sits with bond buyers and shareholders if AI returns disappoint; the confidence, for now, is unmistakable. Everything AI, tested — and increasingly, financed.
Frequently asked questions
How much is Microsoft raising, and is it final?
About $25 billion, according to a source who spoke to Reuters and Bloomberg’s reporting. Microsoft’s regulatory filing confirms a bond sale but not the size, and the final amount may change with demand.
When did Microsoft last sell US investment-grade bonds?
More than nine years ago, according to Reuters — this is its first such offering since then.
What will the money be used for?
Reporting frames the sale as funding Microsoft’s AI ambitions — the data-center and infrastructure buildout behind Azure and its AI services. Microsoft has not published a detailed use-of-proceeds breakdown in the reporting so far.
Who is managing the sale?
Wells Fargo, JPMorgan Chase and UBS Group, according to Bloomberg’s reporting.
Sources: Reuters, Bloomberg via Reuters