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Akamai seeks $2.6b in convertible bonds for cloud
Akamai, is seeking to raise US$2.6 billion through two zero-coupon convertible bond tranches due in 2030 and 2032 to fund cloud infrastructure spending, with pricing expected after the New York market closes on May 19.
The company said it will use US$350 million to buy back common stock from bond buyers and spend the rest on hedging costs, capital expenditure for its Cloud Infrastructure Services business, and expanding its global network.
Anthropic signed a US$1.8 billion computing deal with Akamai, while the bond terms show conversion premiums of 37.5% to 42.5% for the 2030 notes and 30% to 35% for the 2032 notes.
🔗 Source: Bloomberg
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Implications, context, and why it matters.
One AI contract is driving Akamai’s US$2.6 billion bond sale
- Akamai tied the fundraising to a seven-year computing contract with Anthropic, which is the largest deal in the company’s history 1.
- That agreement sent Akamai shares up 27% in one day, their biggest jump in more than two decades 1.
- Anthropic’s annualized revenue and usage grew 80x in the first quarter of 2026, which drove demand for more computing capacity, said Dario Amodei, CEO of Anthropic 2.
AI is chipping away at the hyperscaler hold on cloud infrastructure
- The pact fits a wider shift in AI. Companies now spread workloads across several providers like Google and SpaceX rather than rely on one cloud vendor 2.
- The move also backs Akamai’s 2022 decision to buy Linode, a cloud provider, for about US$900 million in cash to expand its cloud business and build a more distributed platform 3.
- Demand for edge computing reaches beyond Akamai. Fastly, a cloud computing company focused on edge services, said compute revenue rose 67% year over year as AI demand lifted edge workloads 4.
Recent Akamai developments
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