Morgan Stanley forecasts AI‑related global debt issuance will reach nearly $570 billion in 2026, up from $236 billion by May 31, as hyperscalers tap bond markets to fund massive AI infrastructure build‑outs.
In the past 48 hours, Reuters reports that hyperscale tech firms are issuing record volumes of AI‑related debt in multiple currencies, pushing investment‑grade issuance toward a historic $2 trillion in 2026 and prompting innovative deal structures amid investor caution.
In June 2026, the combined market capitalization of the “Magnificent 7” — Microsoft, Nvidia, Alphabet, Apple, Meta, Tesla, and Amazon — plunged by approximately $2.3 trillion as investors grew increasingly wary of the massive AI infrastructure investments and their uncertain returns.
In June 2026, the combined market value of the “Magnificent 7” — Microsoft, Nvidia, Alphabet, Apple, Meta, Tesla and Amazon — plunged by approximately $2.3 trillion amid investor anxiety over massive AI infrastructure spending and uncertain returns.
Alphabet has unveiled plans to raise $80 billion in equity to fund AI infrastructure expansion, with backing from Berkshire Hathaway. The move marks the largest single AI infrastructure commitment to date and signals a major escalation in the AI arms race among tech giants.
NYU finance professor Aswath Damodaran cautions that AI hype has inflated valuations—such as OpenAI’s $730 billion and Anthropic’s $380 billion—creating a “market delusion.” He argues that overconfidence among founders, VCs, and investors may lead to thinner margins and warns of underappreciated transition risks.