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Microsoft Borrows $25 Billion in Bonds to Fund AI Expansion After Buyout Offer
Microsoft sells $25 billion of bonds to fund AI infrastructure as it offers voluntary buyouts to about 60,000 employees.
Key points
- The $25 billion sale was split into 10 tranches, with fixed-rate notes carrying coupons of 4.85% to 6.35%.
- Investor orders of about $115 billion came in more than 4.6 times the amount Microsoft intended to raise.
- Microsoft expects around 3,000 employees or fewer to accept its voluntary exit offer, which covers HR, finance, Windows and Xbox.
Why it matters. The debt is intended to finance Microsoft's growing infrastructure requirements for AI, while the company also offers buyouts to about 60,000 staff in four countries.
Microsoft priced a $25 billion bond offering on October 29, 2026, its first major US investment-grade debt sale since 2017. Orders reached about $115 billion, more than 4.6 times the intended amount, with closing set for November 4. Separately, the company offered a voluntary exit package on October 26 to about 60,000 employees in the US, UK, Canada and India.
Latest updates
Microsoft Borrows $25 Billion in Bonds to Fund AI Expansion After Buyout Offer
Microsoft has offered voluntary buyouts to 60,000 employees, according to reports published by Jagran Josh. The company has also raised $25 billion through bond sales. Reports say the borrowing is intended to finance its large-scale investment in artificial intelligence. The coverage does not set out a detailed breakdown of how the funds will be allocated. Microsoft's exact timeline for the buyouts and the bond issue was not specified in the report.