Advanced Micro Devices (AMD) launched a major bond sale on Thursday, seeking to raise as much as $5 billion in what could become its largest-ever investment-grade debt offering.

The chipmaker filed with the U.S. Securities and Exchange Commission earlier in the day in connection with the transaction, though the filing did not specify final terms.

Four-Tranche Senior Unsecured Notes

AMD is offering senior unsecured notes across four tranches with maturities in 2029, 2031, 2033, and 2036. Initial price guidance was set at approximately 70 basis points over U.S. Treasuries for the 3-year notes, 90 basis points for the 5-year, 100 basis points for the 7-year, and 115 basis points for the 10-year debt.

The final size of the offering has not been confirmed and may adjust based on investor demand. The bonds are expected to settle on August 17. AMD shares were up approximately 1.8% on Thursday.

No final pricing had been confirmed as of Thursday afternoon.

AI Partnerships Drive Capital Spending

The debt raise comes as AMD scales up capital expenditures to meet surging demand for AI computing. AMD currently ranks as the second-largest designer of AI accelerators behind Nvidia, which dominates the market for training large language models. The company recently secured agreements with Anthropic and Microsoft to broaden the deployment of its AI chips, customer wins that are central to AMD's effort to capture a larger share of a market that Nvidia currently leads.

Under the Anthropic agreement, AMD has committed to invest up to $5 billion in the Claude chatbot creator.

AMD stated that bond proceeds will be used for general corporate purposes, which may include repaying existing debt. The company has $875 million in bonds maturing next month.

Syndicate of Banks Leading the Offering

Bank of America, JPMorgan, Barclays, and Wells Fargo are leading the deal, according to the term sheet. Barclays, Citigroup, Morgan Stanley, and other firms are also managing the sale, according to separate sources.

JPMorgan and Citi declined to comment. AMD and the remaining banks did not immediately respond to requests for comment.

AMD's multi-tranche structure provides investors with options across the yield curve, ranging from short-dated notes to a 10-year tenor. The 10-year tranche, the longest in the offering, carries an initial yield premium of 115 basis points over Treasuries.

The bond sale places AMD among a growing roster of technology companies accessing debt markets to finance AI-related investments. Rivals including Nvidia and Microsoft have also tapped debt markets in recent years to fund infrastructure buildouts. The scale of AMD's offering underscores the capital intensity of competing in AI silicon, where the company is racing to expand its Instinct GPU roadmap against Nvidia's established Hopper and Blackwell platforms.