Microsoft announced on Thursday its plan to issue $25 billion in bonds, leveraging its healthy credit rating to support infrastructure expansion. The company holds a top-tier S&P AAA credit rating, and management aims for capital expenditures of $170 billion by 2026 to meet the immense demand from AI labs like Anthropic and OpenAI, as well as other clients. Microsoft stated that the net proceeds from this bond offering will be used for general corporate purposes, including working capital, capital expenditures, stock repurchases, acquisitions, and repayment of existing debt. The offering is expected to close on November 4. Unlike Meta, Alphabet, and Amazon, Microsoft has maintained positive free cash flow.