Amazon, Alphabet, Meta, Microsoft and Oracle are borrowing heavily to fund artificial intelligence infrastructure. Four of the largest US tech companies plan to spend approximately $650 billion on AI infrastructure in 2026, while capex estimates for all hyperscalers reach $800 billion to $1.1 trillion. AI-linked corporate debt issuance reached $450 to $500 billion in the first nine months of 2026, more than double the pace of previous years. Goldman Sachs projects hyperscaler AI debt issuance could approach or exceed $1 trillion in 2027. Tech firms have moved over $120 billion in AI data center spending off their balance sheets through special purpose vehicles and leasing arrangements. Meta’s yields exceed 7%, and Oracle’s implied 5-year default risk has risen above 20% based on credit default swap spreads, reflecting growing investor concerns. Global debt hit a record $365.5 trillion in the first half of 2026, intensifying competition between tech giants and sovereign borrowers for the same pool of capital.
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