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Big Tech Keeps Piling On AI Debt. Spending Is Set to Soar.

J.P. Morgan says Big Tech has underwritten roughly $455 billion of new debt tied to hyperscaler AI/data-center spending, a shift that’s reshaping bond markets and creating a spectrum of risk and yields for investors. The report counts about $357 billion in direct borrowing by Amazon, Microsoft, Alphabet, Meta and Oracle, plus debt linked to data-center financing (including off‑balance‑sheet leases). Oracle accounts for roughly $133 billion of debt sales as it scales cloud capacity for a large OpenAI contract; Meta is tied to about $89 billion of borrowing, roughly $30 billion of which it kept off its balance sheet via a Blue Owl JV. With 2026 capex expected to outstrip operating cash flow for these firms, bond supply and credit profiles are likely to remain a market focus and could pressure yields and investor demand across credit markets.

Category

US Tech 100

Sentiment

Mixed

Event

Institutional outlook

Reading time

1 min