The boom in artificial intelligence (AI) investment in the United States is raising new concerns about the financial stability of major tech companies, as more and more giant firms are taking on huge debt burdens to finance the development of AI infrastructure.
Leading tech companies such as Alphabet, Meta, Amazon, Microsoft and Oracle are reportedly issuing corporate debt at the highest rate in history, in line with the growing capital needs to build data centers, buy high-performance chips and develop large-scale energy networks.
Big Tech Debt Soars to Record Levels
According to market data, the five US tech giants have issued more than $121 billion in corporate bonds through 2025, far exceeding the annual average of around $28 billion in the previous five years. The drastic surge reflects the increasing cost pressures in the race to develop AI infrastructure.
Alphabet alone plans to raise up to $15 billion through a new bond issue in February 2026, part of a projected annual capital expenditure of $185 billion, the highest in the company’s history.
Meanwhile, Oracle has issued $18 billion in bonds, while Meta has raised nearly $30 billion to finance the construction of mega-scale AI data centers. Overall, the global tech industry is expected to issue more than $428 billion in debt through 2025, driven entirely by the need for AI investment.
Data Center Debt Soars Over 100%
More worryingly, debt specifically for AI data center construction is expected to jump 112% in 2025 to $25.4 billion, signaling a growing reliance on external financing. Since 2022, total data center-related debt has increased by nearly 1,854%, reflecting the increasingly uncontrollable cost pressures of AI infrastructure.
Morgan Stanley estimates that AI-related data center spending could reach $2.9 trillion from 2025 to 2028, with nearly half of that expected to be financed through debt, increasing systemic risk to financial markets.
Financial Risks Rising
Goldman Sachs has warned that the trend of financing AI through debt has the potential to increase macroeconomic risks if AI investment returns fail to meet expectations. The increased supply of technology bonds has also put pressure on credit markets, with investors demanding higher returns to compensate for risk.
This pressure is beginning to be reflected in the surge in Credit Default Swap (CDS) spreads of several major technology companies, most notably Oracle, signaling investor concerns about long-term credit risk.
Threat of ‘AI Bubble’ Growing More Prominent
While tech giants still have large cash reserves, analysts warn that this aggressive financing has the potential to create an AI debt bubble. If revenue growth fails to cover investment costs, these companies could face cash flow pressures, shrinking profit margins, and the risk of credit rating downgrades.
This opens up the possibility that the AI wave, originally seen as a growth catalyst, could end up becoming a financial burden that could destabilize US technology companies in the long term.
