Microsoft is raising at least $25 billion through a major corporate bond offering, its first US debt sale since 2017. The bonds span up to 10 tranches with maturities ranging from 2 to 40 years, and investor orders surpassed $115 billion — more than four times the amount issued. Wells Fargo, JPMorgan Chase, and UBS Group are managing the offering. Microsoft plans to use the proceeds for general corporate purposes, including capital expenditures tied to AI data center construction.
The borrowing comes as tech companies increasingly take on large amounts of debt to finance artificial intelligence investments. Microsoft's top AAA credit rating makes it one of the most attractive companies for investors in the AI funding race, even as the market becomes more selective about backing AI-related debt.
Microsoft also reported strong AI-driven revenue growth, with quarterly revenue reaching $92.3 billion, up 19 percent. Daily Copilot users grew more than fivefold year over year, and customers with over 50,000 seats grew eightfold. Companies like Unilever, Rolls-Royce, and Raiffeisen are using AI tools for order processing, engine maintenance, and credit workflows. Azure revenue rose 48 percent, and Microsoft Cloud revenue hit $63.9 billion.
Not everyone is convinced AI spending is paying off. Apollo economist Torsten Slok found no signs of AI improving productivity growth despite hundreds of billions in investment. Since ChatGPT launched in November 2022, a widening gap has emerged between the Magnificent Seven tech companies and the rest of the S&P 500. Most AI spending remains concentrated among a small group of AI service companies, and mainstream corporate America appears reluctant to pay for the latest models.
On the product front, Rivian and Volkswagen Group are expanding their $5.8 billion joint venture to include Rivian's AI voice assistant technology. Rivian is licensing its AI assistant to VW, though fees and vehicle details were not disclosed. The assistant, which rolled out on Rivian's R1S, R1T, and R2 vehicles, helps drivers and passengers interact with the car and control functions. Separately, Bitcoin Core patched three security vulnerabilities discovered by Project Loupe, an AI-based security scanning initiative by Elias Rohrer at Spiral.
Beyond corporate adoption, AI is making its way into education and training. Hana Financial Group opened a digital vocational classroom at Miral School in Seoul, using robotics and VR to help students with developmental disabilities practice workplace skills. Meanwhile, Case Western Reserve University School of Law became the first in the country to require AI in its curriculum, teaching students to use AI for data analysis, document review, and contract analysis.
Key Takeaways
- Microsoft issued at least $25 billion in corporate bonds, its first US bond sale since 2017, with orders exceeding $115 billion.
- Microsoft's quarterly revenue hit $92.3 billion, up 19 percent, driven by expanding Copilot adoption and a 48 percent rise in Azure revenue.
- Daily Copilot users grew more than fivefold year over year, and customers with over 50,000 seats grew eightfold.
- Apollo economist Torsten Slok found no evidence of AI improving productivity growth despite massive investment across the sector.
- Rivian and Volkswagen expanded their $5.8 billion joint venture to include Rivian's AI voice assistant technology for vehicles.
- Bitcoin Core patched three security vulnerabilities discovered by Project Loupe, an AI-based security scanning initiative by Elias Rohrer at Spiral.
- Hana Financial Group launched an AI and VR training program for disabled students at Miral School in Seoul, with plans to expand to Incheon and Daejeon by early 2027.
- Case Western Reserve University School of Law became the first in the US to require AI in its curriculum for all students.
- Microsoft's bond proceeds will fund capital expenditures tied to AI data center construction.
- AI spending remains concentrated among a small number of tech companies, with most of corporate America unwilling to pay for the latest models.
Microsoft issues $25 billion in bonds for AI investment
Microsoft is issuing at least $25 billion in corporate bonds, its first US bond market offering since 2017. The bonds span 10 tranches with maturities from 2 to 40 years. Orders exceeded $115 billion, more than four times the amount issued. Microsoft holds a top AAA credit rating among tech companies. The funds will be used for general corporate purposes including capital expenditures tied to AI data center construction.
Microsoft seeks $25 billion from first bond sale in nine years
Microsoft Corp. plans to raise at least $25 billion from its first US investment-grade bond sale in over nine years. The debt offering includes up to 10 tranches with maturities ranging from 2 to 40 years. Wells Fargo, JPMorgan Chase, and UBS Group are managing the offering. Microsoft last sold high-grade debt in 2017, raising $17 billion. Proceeds will fund general corporate purposes including capital expenditures for AI investments.
Microsoft to raise up to $25 billion in bond market
Microsoft is raising up to $25 billion in the bond market as investors become more selective about funding AI-related debt. The borrowing reflects the broader trend of tech companies taking on large amounts of debt to finance artificial intelligence investments. Microsoft's strong market position makes it one of the most attractive companies for investors in the AI funding race.
Illustration shows Artificial Intelligence AI text
This is a file photo showing figurines with computers and smartphones placed in front of the words Artificial Intelligence AI. The illustration was taken on February 19, 2024. The image represents the growing presence of AI technology in everyday devices.
AI sign at World Artificial Intelligence Conference in Shanghai
This is a file photo showing an AI sign at the World Artificial Intelligence Conference in Shanghai, China. The conference took place on July 6, 2023. The image highlights the global focus on artificial intelligence development and research.
AI Investment Summit 2026 explores Physical AI in Munich
The AI Investment Summit 2026 will take place in Munich on October 29, 2026. The event explores how AI is moving from digital screens into robots, factories, and machines. Speakers include representatives from Google, Helsing, PTC, and ARX Robotics. Around 150 decision-makers from the AI ecosystem are expected to attend. The free event covers capital, risk, and execution topics for Physical AI development.
Hana Financial opens AI and VR training for disabled students
Hana Financial Group opened a digital vocational training classroom at Miral School in Gangnam-gu, Seoul. The classroom uses robotics and virtual reality to help students with developmental disabilities practice real workplace skills. Students can train using a voice-enabled humanoid robot, VR devices, digital kiosks, and point-of-sale terminals. Hana Financial Group plans to expand the program to Incheon and Daejeon by the first half of 2027. The initiative also provides career counseling and teacher development programs.
QCon AI New York 2026 highlights agent identity and inference
QCon AI New York 2026 will take place December 15-16 at the Westin Jersey City Newport. The conference focuses on production AI for senior software engineers and engineering leaders. Program picks include talks on agent identity, context costs, open-source inference, and audio AI. Early-bird pricing is $1,705 until November 10, then rises to $1,790. Topics cover delegated authority, token compression, and coding agent structures.
Apollo economist finds no signs of AI productivity growth
Apollo economist Torsten Slok published research finding no signs of AI improving productivity growth despite hundreds of billions in investment. The study shows a growing gap between the Magnificent Seven tech companies and other S&P 500 companies since ChatGPT launched in November 2022. Most AI spending is concentrated among a small number of AI service companies. The research suggests mainstream corporate America is unwilling to pay for the latest AI models. Investors worried about AI risks may consider diversifying with bonds and international stocks.
Bitcoin developers fix 3 security flaws found by AI
Bitcoin Core disclosed three security vulnerabilities discovered by Project Loupe, an AI-based security scanning initiative by Elias Rohrer at Spiral. Two flaws could allow malicious peers to exhaust node memory and crash Bitcoin nodes on Windows and macOS systems. The vulnerabilities were found between July 8 and October 23, 2026. Developers released security patches by October 26, following Bitcoin Core's immediate disclosure policy. Older systems and certain releases may still be exposed after upgrading.
Rivian and VW expand joint venture to include AI assistant technology
Rivian and Volkswagen Group are expanding their $5.8 billion joint venture to include Rivian's AI voice assistant technology. Rivian is licensing its AI assistant to VW but did not share the fees or which vehicles will use it. The AI assistant helps drivers and passengers interact with the car and control functions. Rivian developed the assistant over two years and rolled it out in May 2026 on its R1S and R1T vehicles, and in October on its R2 SUV. Rivian says controlling its full technology stack lets it deliver fast over-the-air updates.
Microsoft reports strong AI growth as Copilot use expands in businesses
Microsoft reported revenue of $92.3 billion, up 19 percent, as more businesses adopted AI tools. Daily Copilot users grew more than fivefold year over year, and customers with over 50,000 seats grew eightfold. Companies like Unilever, Rolls-Royce, and Raiffeisen are using AI for tasks such as order processing, engine maintenance, and credit workflows. Microsoft also added consumption-based billing for complex AI agents, with usage-based customers growing over 75 percent in the quarter. Azure revenue rose 48 percent and Microsoft Cloud revenue reached $63.9 billion.
CWRU law student AI work leads to national summit invitation
Case Western Reserve University School of Law students are the first in the country to have AI required in their curriculum. They learn to use AI for data analysis, pattern recognition, document review, and contract analysis. The school says AI is taught as both a practical tool and a way of thinking. A student's AI innovation earned an invitation to a national summit. The curriculum aims to help students think critically and make informed decisions using AI.
Sources
- Microsoft Issues $25 Billion in Corporate Bonds Amid AI Investment Race, Returning to Market After 9 Years
- Microsoft Looks to Raise at Least $25 Billion From US Bond Sale
- Microsoft to raise up to $25 billion in bond market as investors get pickier about AI debt binge
- FILE PHOTO: Illustration shows words "Artificial Intelligence AI\
- FILE PHOTO: FILE PHOTO: An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai
- GER_AI Investment Summit 2026_Oct-29-2026
- Hana Financial brings AI, VR job training to students with disabilities
- QCon AI New York 2026 Program Committee Picks: Agent Identity, Context Costs, and Open-Source Infere
- What if AI Doesn't Work? Apollo's Torsten Slok Sees "No Signs" of AI Productivity Growth.
- Bitcoin developers rush to fix 3 security flaws after AI uncovers them
- Rivian expands joint venture with VW to include AI assistant
- Microsoft Sees Enterprise AI Adoption Accelerate as Copilot Usage Grows
- CWRU law student’s AI innovation leads to summit invitation | CWRU Newsroom
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