Amazon to Issue $25B Debt as DeepSeek Develops Proprietary AI Chip
AMZN•Amazon plans to raise $25 billion through new debt, causing AI-linked bond prices to tumble and yields to spike sharply. Its DeepSeek unit is developing an in-house AI processor aimed at cutting reliance on Nvidia hardware for cloud and data-center operations.
1. Planned $25 Billion Debt Raise
Amazon announced intention to issue $25 billion in debt to fund expansion and refinance existing obligations, marking its largest single debt offering to date.
2. AI-Related Bond Sell-Off
The announcement triggered a sharp sell-off in the company's AI-linked bonds, with prices tumbling and yields climbing as investors reassessed leverage risk tied to its AI investments.
3. DeepSeek’s Proprietary AI Chip
Amazon’s DeepSeek division is developing its own AI processor to reduce reliance on Nvidia hardware in cloud and data-center operations, potentially lowering costs and enhancing supply-chain control.
