In a striking development over the last 48 hours, Reuters reveals that hyperscale technology companies—such as Amazon and Alphabet—are issuing unprecedented volumes of AI‑related debt across global bond markets. To avoid saturating the U.S. market, these firms are increasingly tapping non‑USD issuance, setting borrowing records in euros, sterling, yen, and other currencies.(investing.com)
Bankers now estimate that AI‑linked borrowing could push total investment‑grade issuance above $2 trillion for the first time in 2026. AI‑related debt already accounts for nearly 15% of U.S. investment‑grade issuance, according to Barclays data.(investing.com)
To attract investors amid this flood of supply, deal structures are evolving. One recent example includes a data‑center lease‑backed note tied to Amazon that was oversubscribed nine times, offering investors clearer visibility into future cash flows.(resultsense.com)
Despite the surge, demand remains strong—investors continue to buy high‑quality AI‑linked bonds. Still, concerns are growing about whether markets can sustain this pace if AI returns disappoint or if supply outpaces appetite.(investing.com)
This wave of AI‑driven debt issuance marks a pivotal shift: the AI build‑out is no longer just a stock‑market story—it’s reshaping the credit markets themselves.