Microsoft plans to borrow $25 billion, as an enormous amount of money is being poured into data centers required for AI. Fortunately, a strong credit rating makes borrowing easier. The company’s free cash flow remains positive, but this kind of additional funding can be used to support investments and also cover other things, such as acquisitions or repaying old debt.
Key Points
- Microsoft announced the pricing for $25 billion in new debt.
- The company has access to the debt market but hasn’t tapped it, finance chief Amy Hood told analysts on Wednesday.
https://www.cnbc.com/2026/10/29/microsoft-25-billion-debt-offering.html