For a company that practically prints cash, Amazon.com Inc.
Even Amazon's Fortress Balance Sheet Has Limits
Amazon sits on roughly $84 billion in cash and marketable securities with only $58 billion in debt, giving it a net cash cushion that would make most CFOs jealous.
But with AI and data center spending surging toward $150 billion by FY26, JPMorgan says even that liquidity may not be enough to comfortably fund the next phase of the AI arms race.
Hyperscaler Cash Can't Carry AI Forever: JPMorgan
According to JPMorgan, Amazon's capex is projected to jump nearly 2x from $78 billion in FY24 as AWS accelerates investments in GPUs, networking, and power infrastructure to meet explosive AI demand. Across the sector, annual AI and data center capex is approaching $450 billion, far outpacing organic cash flow.
JPMorgan expects Big Tech collectively to issue $1.5 trillion in new investment-grade bonds over the next five years, marking a generational shift in how Silicon Valley funds itself.
"Hyperscaler cash flow remains the foundation of growth capital," analyst Erica Spear wrote in a research note, but "sustained double-digit capex intensity is beginning to compress FCF conversion."
From Self-Funded To Strategically Levered
Amazon hasn't borrowed since retiring maturities in 2022, even as peers tapped the market - Meta Platforms Inc
For investors, a new Amazon bond deal wouldn't signal weakness - it would underscore how massive AI's capital needs have become. When even the cash-rich start borrowing, it's clear the AI boom isn't just changing tech - it's rewriting the rules of corporate finance.
