Amazon surprised bond markets on July 7 with a $25 billion debt sale, its largest single offering this year, as investors showed tepid demand compared to prior AI-linked issuances, according to Bank of America. The funds support Amazon Web Services, where CEO Andy Jassy explained that the cloud unit must spend upfront on essential infrastructure—including physical sites, energy, facilities, processors, servers, and network hardware—before generating revenue months later. The weak reception, with orders at just 2.5 times the bonds on offer, contrasted with earlier deals and fueled uncertainty about the broader AI buildout. Amazon’s first-quarter capital spending hit $43.2 billion, contributing to a steep decline in free cash flow.