Big Tech Sells $40 Billion in Foreign Bonds as AI Spending Climbs to $725 Billion
Updated
Updated · Financial Times · May 15
Big Tech Sells $40 Billion in Foreign Bonds as AI Spending Climbs to $725 Billion
7 articles · Updated · Financial Times · May 15
Alphabet capped its latest overseas push with a ¥576.5 billion ($3.6 billion) debut yen bond, after selling more than $40 billion equivalent in non-US currencies since last year.
The borrowing spree reflects hyperscalers' need to fund an estimated $725 billion of AI spending this year, which has pushed free cash flow to its lowest level in more than a decade.
Foreign markets also help companies avoid crowding in the US debt market, where heavy AI-related issuance has made investors more selective and, in some cases, forced riskier borrowers to pay higher yields.
Amazon has followed the same playbook, raising about SFr2.8 billion this week after a record €14.5 billion eurobond sale, while bankers say some groups are also eyeing Australian and Singaporean dollar debt.
Foreign-currency bonds now account for about 30% of hyperscalers' borrowing, helped by lower rates in markets such as Europe and Switzerland and demand for long-dated funding like Alphabet's 100-year sterling bond.
As Big Tech taps global markets for cash, is Wall Street losing its grip on corporate America's financing?
Is Big Tech's 100-year bond for AI a visionary investment or the peak of a massive speculative bubble?
Big Tech’s $1 Trillion AI Debt Boom: How 2026 Reshaped Corporate Finance and Global Risk
Overview
In 2026, corporate finance experienced a historic shift as Big Tech companies led an unprecedented surge in AI-related investments, fueling this growth through a boom in debt issuance. Major technology firms, like Alphabet, turned to bond markets to raise massive amounts of capital, including rare long-term bonds, to support their ambitious AI initiatives. This strategy not only solidified Big Tech’s dominance in global corporate debt markets but also reflected strong confidence in the long-term value and growth potential of artificial intelligence, marking a new era in how technological advancements are funded and shaping the future of the industry.