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

BlockBeats News, June 10th, Morgan Stanley's latest forecast shows that the global AI-related bond issuance is expected to reach nearly $570 billion by 2026, more than double from last year. As of the end of May, around $236 billion in AI-related debt financing has been issued globally, about four times the amount from the same period last year. With the capital expenditure of mega-scale cloud service providers expected to exceed $1 trillion in 2027, Morgan Stanley predicts that the bond issuance pace will further accelerate in the second half of this year. To broaden the financing channels, tech giants such as Alphabet and Amazon have issued a large number of Eurobonds, extending the financing currency from the U.S. dollar market. Semiconductor companies are increasingly inclined to adopt short-term financing with installment repayment structures.

The fundamental reason for the surge in AI debt is that the capital expenditures of tech giants have far exceeded their profit coverage. Data from Bank of America shows that Amazon, Alphabet, Meta, Microsoft, and Oracle collectively issued $121 billion in U.S. corporate bonds in 2025, far surpassing the annual average of $28 billion from 2020 to 2024. According to Credit Suisse's estimate, the capital expenditures of mega-scale cloud companies in 2026 are expected to consume nearly 100% of operating cash flow, compared to a ten-year average of only about 40%, with debt financing filling the gap. In addition to debt issuance, equity financing is also gaining momentum—Google has recently completed a total of $84.75 billion in equity capital financing, and Barclays predicts a significant increase in the likelihood of Meta, Microsoft, and Amazon issuing equity, mandatory convertible bonds, or equity-linked securities in the future.