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Tech companies increase bond sales despite rising financing costs
AI-focused giants are borrowing at a record clip even as Treasury yields climb and credit markets flash warning signs
Bloomberg reports that tech companies are ramping up bond issuance this year, even as financing costs rise. Nearly $500 billion in AI-related debt has been issued in 2026 so far, a borrowing spree aimed squarely at data centers, AI chips and the infrastructure that ties them together.
Who is borrowing, and how much
The biggest names in the pile are the so-called hyperscalers. That’s industry shorthand for the companies running cloud computing at enormous scale: Amazon, Alphabet, Meta, Microsoft and Oracle.
Collectively, the hyperscalers have issued approximately $200 billion or more in new debt in 2026.
Amazon raised roughly $54 billion recently. Alphabet came in at $31.5 billion and Meta at $30 billion. Oracle’s issuance falls somewhere in the $18-30 billion range.
Broadcom has tapped the market, and SpaceX completed a $25 billion bond deal in June 2026. That SpaceX deal was oversubscribed.
Why the timing looks unusual
Long-term Treasury yields have reached multi-decade highs, and corporate borrowing costs tend to move with them.
Analysts at Bank of America raised their 2026 hyperscaler debt forecast from $140 billion to $175 billion after the latest wave of issuance.
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Projections for total AI-related financing this year range widely, from $300 billion to upwards of $570 billion.
Goldman Sachs projects that total AI debt could potentially exceed $1 trillion annually in coming years.
The revenue story behind the borrowing
OpenAI predicts annual revenues of $70 billion or more by year-end 2026.
Credit markets are starting to flinch
Broadcom’s 5-year CDS spiked to a record 136 basis points, reflecting heightened volatility and more perceived credit risk around one of the sector’s key chip suppliers.
Market-implied 5-year default rates have climbed for other borrowers too. Oracle’s sits above 20%, while SpaceX’s is around 16%.
What this means for investors and the sector
If Goldman’s projection of more than $1 trillion in annual AI debt comes to pass, traditional credit markets would be absorbing a volume of issuance that could test their capacity.
Key things to watch from here: whether Bank of America and others revise their forecasts again, whether CDS levels for Broadcom, Oracle and SpaceX keep climbing, and whether demand for new tech bond deals stays as strong as it was in June.