Microsoft prices $25B bond sale to fund AI buildout

Microsoft sold $25 billion of senior unsecured notes across ten tranches, with maturities running from two to 40 years. Its pricing term sheet is dated October 29 and was filed with the SEC on October 30. Investor orders reportedly exceeded $100 billion, more than four times the offering size, and proceeds are earmarked for capital expenditures, share repurchases and general corporate purposes. The deal marks the company's return to the US investment-grade bond market after more than nine years. Other hyperscalers have leaned on debt to pay for data centers and chips, and Reuters framed this sale as the latest tech giant tapping debt to fuel its AI push. For founders, the signal is that frontier-scale compute now gets financed in public bond markets alongside venture rounds. Investment-grade debt from a company this size sets a pricing benchmark for AI infrastructure and competes for the same capital that smaller compute borrowers need.