The five largest US technology firms have collectively issued $159 billion in corporate bonds through early June 2026. This figure marks a sharp 47% increase from the $121 billion raised by the same group throughout all of 2025.
Amazon led the borrowing spree with approximately $57 billion in issuance, followed closely by Alphabet at $52 billion. Meta contributed $30 billion, while Oracle raised $18 billion. Microsoft also participated, though its specific total was not individually detailed.
This surge pushes the technology sector’s share of total US corporate debt issuance to 18%, achieving a record 10.3% portion of the investment-grade market.
The capital is primarily directed toward artificial intelligence infrastructure. Analysts project combined AI-related capital expenditures for these giants could reach $725 billion in 2026. Free cash flow alone is insufficient to cover the cost of building dozens of hyperscale data centers simultaneously. Consequently, firms are exploring diverse instruments, including century bonds with 100-year maturities.
Morgan Stanley estimates global AI-related debt could approach $570 billion by the end of 2026. While investment-grade ratings remain stable and demand is robust, the rapid leverage increase warrants scrutiny. Debt-funded expansion avoids shareholder dilution but introduces higher interest expenses and financial risk as depreciating assets anchor the balance sheets.