Alphabet, Amazon Tap Yen and Swiss Debt Markets as AI Spending Tops $700 Billion
Updated
Updated · Reuters · May 11
Alphabet, Amazon Tap Yen and Swiss Debt Markets as AI Spending Tops $700 Billion
7 articles · Updated · Reuters · May 11
Alphabet plans its first yen bond sale and Amazon is preparing a debut Swiss franc offering, extending Big Tech’s borrowing drive beyond the U.S. to fund AI infrastructure.
More than $700 billion is expected to be spent on AI infrastructure in 2026, up from $410 billion in 2025, pushing cash-rich tech groups to rely more heavily on debt.
Several hundred billion yen could be raised by Alphabet, with terms expected this month; it has hired Mizuho, Bank of America and Morgan Stanley for the deal.
Amazon’s Swiss franc sale is structured in six parts with maturities from three to 25 years, and the company said proceeds may support business investments and future capital expenditure.
Alphabet already raised nearly $17 billion last week through euro and Canadian-dollar bond sales, underscoring how global credit markets are becoming a key funding source in the AI race.
Big Tech is funding a short-lived AI race with long-term debt. What happens when the hardware becomes obsolete?
As AI's hunger for power and land grows, will physical limits derail the tech giants' trillion-dollar ambitions?
Big Tech’s $700 Billion AI Bet: Debt, Disruption, and the Global Stakes of the 2026 AI Infrastructure Boom
Overview
In 2026, Big Tech companies are making record-breaking investments in AI infrastructure, with industry-wide spending projected to exceed $700 billion—almost six times what leading US hyperscalers spent in 2022. This surge is fueled by rapid AI advancements and growing adoption, which drive strong demand for computing power. Major players like Microsoft, Alphabet, Amazon, and Meta are channeling most of their capital into AI chips, servers, and data centers. While these investments boost revenue growth, they also reduce free cash flow, pushing companies to borrow more and shift their funding strategies to support ongoing AI expansion.