Morgan Stanley: Global AI Debt Issuance to Top $500B in 2026

Morgan Stanley forecasts that global debt issuance tied to artificial intelligence will more than double to nearly $570 billion in 2026, as major technology companies increasingly turn to bond markets to fund their massive AI infrastructure investments.

Details

According to the investment bank's report, AI-related debt issuance reached approximately $236 billion as of May 31, 2026, a fourfold increase from the same period last year. The four largest hyperscalers—Alphabet, Amazon, Microsoft, and Meta—are expected to spend a combined $700 billion in capital expenditures this year.

Context

Technology companies have traditionally relied on strong cash flows to fund operations, but they are now increasingly using debt financing to meet surging investment needs in AI. This shift underscores the enormous scale of spending required to build and expand data centers and cloud infrastructure.

What This Means for Investors

The forecast points to a rapidly growing market for AI-related debt, which could increase bond supply and affect yields. It also reflects investor confidence in the long-term growth prospects of the AI sector, as companies leverage debt to accelerate their AI initiatives.