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Amazon (AMZN) is poised to surpass Walmart as the world’s largest company by annual revenue in 2025.
Amazon issued $15B in debt and saw demand approach $80B with yields only 80 basis points above Treasuries.
AWS holds 29% global cloud market share and grew 20% year-over-year in the most recent quarter.
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Amazon (NASDAQ:AMZN) is poised to surpass Walmart (NYSE:WMT) as the world’s largest company by annual revenue this year. With trailing 12-month figures showing the two currently running neck-and-neck, Amazon’s faster trajectory now has analysts believing it will pull ahead in calendar 2025 comparisons.
This milestone marks a shift from traditional retail dominance to a tech-driven giant, where e-commerce, logistics, advertising, and especially cloud computing fuel expansion. While Walmart continues aggressive growth in omnichannel retail and could reclaim the revenue crown in coming quarters through grocery strength and international expansion, Amazon’s diversified model delivers higher compound growth rates — over 20% CAGR in recent years versus Walmart’s low single digits.
The real differentiator, however, lies in one overlooked signal from the capital markets that points to Amazon’s AI dominance for the 2030s.
Amazon recently issued $15 billion in debt, including a rare 40-year bond, and saw demand approach $80 billion — more than five times oversubscribed. Investors accepted yields only about 80 basis points above comparable U.S. Treasuries, effectively treating Amazon as quasi-sovereign credit despite the long maturity. This level of demand is extraordinary for a private company raising funds for aggressive capital expenditures.
The proceeds will primarily support a multi-year AI infrastructure buildout: data centers, custom silicon like Trainium chips, and expanded GPU clusters through Amazon Web Services (AWS). Bond buyers are signaling that they trust Amazon to invest tens of billions annually in AI without eroding returns — a level of confidence not extended to most corporations attempting similar scale.
This financing advantage highlights two structural shifts in AI infrastructure. First, capital is flowing disproportionately to companies with proven scale, predictable cash flows from existing businesses, and clear paths to monetize AI. Amazon checks every box: AWS already approaching a $130 billion annual revenue run rate, e-commerce throws off steady free cash flow, and advertising margins exceed 50%.
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Second, the credit market is splitting. Hyperscalers like Amazon borrow at near-government rates, while smaller cloud providers or startups face sharply higher costs — typically significantly higher, though the exact spread varies depending on market conditions. Over a decade-long AI build cycle, that spread compounds into hundreds of billions in saved interest expense, letting Amazon outspend rivals on capacity without diluting shareholders as aggressively.
AWS holds roughly 29% global cloud market share and remains the default home for enterprise workloads. Companies training or running large models want their AI close to existing data and applications, most of which already live in AWS. Custom chips like Trainium2 are seeing triple-digit sequential growth and multibillion-dollar run rates, offering better price-performance than third-party alternatives for many workloads.
The result: accelerating AWS growth (20% year-over-year most recently, and the fastest since 2022) and a backlog of multi-year AI commitments that management says will drive sustained re-acceleration through 2026 and beyond. Retail and advertising provide margin stability while AWS capital expenditures peak within the next year. After that, free cash flow is expected to surge as the new capacity is utilized.
In AI, infrastructure scale often determines winners. The bond market just handed Amazon the cheapest fuel imaginable for a decade-long race most competitors can’t afford to run at the same pace. While Walmart battles on price and physical footprint, Amazon is building the picks-and-shovels layer that every other AI player — startups, enterprises, even competitors — will rent.
That combination of capital efficiency, incumbent data gravity, and execution credibility makes Amazon the clearest bet to dominate the economics of artificial intelligence through the 2030s.
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