AMD secures $4.75 billion in its largest bond sale to date.

      AMD has secured $4.75 billion in its largest-ever dollar bond offering, which was issued in four tranches maturing from three to ten years. As of the end of June, the company reported $13.1 billion in cash compared to $3.2 billion in debt, showcasing an unusually solid balance sheet for a chip manufacturer of its size.

      The bonds were offered in four segments, and due to strong demand, the longer-term tranche was priced about 0.25% better than initially anticipated, at 0.9 percentage points over Treasuries.

      The new financing follows AMD's commitment of up to $5 billion to Anthropic, as part of a partnership for deploying up to two gigawatts of its Instinct MI450 chips for Claude. Although AMD has not linked these two developments, their filing indicates that the proceeds will be used for general corporate purposes, which may include debt repayment, particularly as $875 million of bonds is set to mature next month.

      Regardless of how these figures are viewed, the $4.75 billion raised alongside the $5 billion Anthropic commitment are significant. This trend reflects how AI funding often involves suppliers financing their customers, with Google and Nvidia also engaged in similar arrangements.

      Analysts project that AMD's revenue will rise by 47% this year, exceeding $51 billion, bolstered by its agreement with Anthropic and another deal with Microsoft.

      The fundraising effort is part of a larger trend, with big tech’s AI-related debt exceeding $350 billion, and investment-grade issuers now being a common part of this landscape rather than an outlier. Six banks, including JPMorgan, Citigroup, and Bank of America, managed this deal, marking a significant increase from AMD's last investment-grade market visit in March 2025, when it raised $1.5 billion.

      A company representative stated that AMD is “committed to maintaining its strong financial balance sheet,” which, based on standard criteria, it has indeed achieved. The intriguing question remains what a chipmaker with $13 billion in cash needs with an additional $4.75 billion.