Tech companies are issuing more debt in 2026 even as financing costs rise. Nearly $500 billion in AI-related debt has been issued so far, while credit default swap levels for some borrowers have climbed.
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, aimed at data centers, AI chips and the infrastructure that connects them.
Hyperscalers lead the borrowing
The largest borrowers are the hyperscalers: Amazon, Alphabet, Meta, Microsoft and Oracle. Together they have issued approximately $200 billion or more in new debt in 2026.
Individually, Amazon raised roughly $54 billion recently, Alphabet $31.5 billion and Meta $30 billion. Oracle's issuance falls somewhere in the $18-30 billion range. Beyond the hyperscalers, SpaceX completed a $25 billion bond deal in June 2026, and that deal was oversubscribed.
Higher yields and bigger forecasts
The timing stands out because long-term Treasury yields have reached multi-decade highs, and corporate borrowing costs tend to move with them. Even so, analysts at Bank of America raised their 2026 hyperscaler debt forecast from $140 billion to $175 billion after the latest wave of issuance.
Projections for total AI-related financing this year range from $300 billion to upwards of $570 billion. Goldman Sachs projects that total AI debt could potentially exceed $1 trillion annually in coming years.
Credit markets show strain
Credit markets are reacting. Broadcom's 5-year credit default swap (CDS) spiked to a record 136 basis points, reflecting more perceived credit risk around one of the sector's key chip suppliers.
Market-implied 5-year default rates have also climbed for other borrowers. Oracle's sits above 20%, while SpaceX's is around 16%.
Source: Crypto Briefing
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