This article first appeared on GuruFocus.

Amazon (AMZN, Financials) is preparing to raise roughly $12 billion from the U.S. corporate bond market, according to a Bloomberg report on Monday, as the company accelerates spending on artificial intelligence infrastructure. A regulatory filing earlier in the day showed Amazon had launched a six-part bond offering without disclosing the final size.

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The longest tranche, a 40-year bond, was first thought to be 1.15 percentage points higher than Treasuries. The company would not talk about the issuance.

More and more, big tech companies are tapping debt markets to pay for costly data center expansions for AI workloads. Meta, Oracle, and Verizon are offering bonds worth billions of dollars to help pay for improvements to infrastructure and strategic collaborations.

Amazon is expected to spend $125 billion on capital expenditures this year and more in 2026 as it expands its AI capabilities in its cloud and retail businesses. This year, experts think that Amazon, Meta, and Alphabet will spend $400 billion on AI infrastructure.

Bloomberg says that the money from the bond sale can be used to buy other companies, make capital improvements, or buy back shares. Amazon announced a $38 billion deal with OpenAI to compete with Microsoft and Google in the cloud. This is how they got the money.