AMD Raises $4.75 Billion in Record Bond Sale for AI Growth
AMD has raised $4.75 billion through its largest-ever US dollar bond offering. Moreover, the sale included four tranches with maturities ranging from three to ten years. Additionally, strong investor demand helped the longest tranche achieve tighter pricing than initially expected, reaching 0.9 points over Treasuries.
Meanwhile, the company maintained a strong financial position before the bond sale. At the end of June, it held $13.1 billion in cash and short-term investments compared with $3.2 billion in debt. Therefore, the fundraising was not driven by an immediate need for liquidity.
AI Expansion and Anthropic Investment
However, the bond sale followed a major investment commitment in the artificial intelligence sector. In July, AMD agreed to invest up to $5 billion in Anthropic while supporting the deployment of up to two gigawatts of its Instinct MI450 chips for running Claude.
Furthermore, the bond proceeds were listed for general corporate purposes, which could include debt repayment. The company also faced $875 million in bonds reaching maturity the following month.
Nevertheless, the scale of the transactions attracted attention. The bond raise reached $4.75 billion, while the Anthropic commitment could reach $5 billion. Additionally, the move reflects a broader AI industry trend where suppliers increasingly support customers purchasing their technology.
Growing AI Financing Demand
Moreover, major technology companies have expanded AI-related borrowing as investment in infrastructure accelerates. Big Tech’s AI debt has exceeded $350 billion, making large investment-grade issuers a regular part of the market.
Meanwhile, analysts expect AMD revenue to rise 47% this year to more than $51 billion. Additionally, growth is expected to be supported by the Anthropic agreement and a separate partnership with Microsoft.
The latest fundraising also represents a major increase from AMD’s previous investment-grade market activity. In March 2025, the company raised $1.5 billion, meaning this latest deal is more than three times larger within 17 months.
Furthermore, six banks managed the transaction, including JPMorgan, Citigroup, and Bank of America. A spokesperson said the company is “committed to maintaining its strong financial balance sheet,” which remains a key focus as AI investments expand.
