JPMorgan Chase Predicts Global AI-Related Bond Issuance to Reach Nearly $570 Billion by 2026

On June 10th, Morgan Stanley’s latest projections show that global AI-related bond issuance is set to hit nearly $570 billion by 2026—more than double the total from last year. As of the end of May, roughly $236 billion in global AI-focused debt financing has been issued, around four times the amount recorded in the same period a year earlier. With capital expenditures by mega-scale cloud service providers projected to exceed $1 trillion in 2027, Morgan Stanley forecasts the bond issuance pace will further accelerate in the second half of this year. To diversify financing channels, tech giants like Alphabet and Amazon have issued a large volume of Eurobonds, expanding their financing currencies beyond the U.S. dollar market. Meanwhile, semiconductor firms are increasingly leaning toward short-term financing with installment repayment structures. The core reason for the surge in AI-linked debt is that tech giants’ capital expenditures have far outpaced their profit coverage. Bank of America data shows that Amazon, Alphabet, Meta, Microsoft, and Oracle collectively issued $121 billion in U.S. corporate bonds in 2025—far outstripping the annual average of $28 billion from 2020 to 2024. Credit Suisse estimates that capital expenditures of these mega cloud firms in 2026 will consume nearly 100% of operating cash flow, compared to a ten-year average of just around 40%, with debt financing filling the gap. Beyond bond issuance, equity financing is also gaining momentum: Google recently completed a total of $84.75 billion in equity capital raises, and Barclays predicts a significant rise in the likelihood that Meta, Microsoft, and Amazon will issue equity, mandatory convertible bonds, or equity-linked securities in the future.