Tech giants tap debt and equity markets to fund massive AI infrastructure push

Major technology firms are shifting from using cash reserves to raising billions in debt and equity to finance artificial intelligence infrastructure. Combined spending by giants like Alphabet, Amazon, Microsoft and Meta is projected to surpass US$730 billion this year, an increase from about US$700 billion. Bridgewater Associates said in a February analysis that the AI boom has entered a "more dangerous phase" due to soaring infrastructure investments and greater dependence on external capital. The companies signalled in April that their spending on AI would continue at a high pace.

Amazon is seeking at least US$25 billion through a U.S. bond offering, according to a July report. The company filed to issue senior unsecured bonds with terms from three to 40 years in an eight-part sale. It also pursued an 11-part bond sale worth about US$37 billion in March. In a separate move, Amazon issued a record $14 billion in Canadian dollar-denominated notes for the Canadian corporate bond market in June. The company is also preparing its first bond offering denominated in Swiss francs.

Alphabet aims to raise between US$20 billion and US$25 billion in its latest U.S. bond sale, offering up to 10 parts. The Google parent recently increased its 2026 spending forecast and emphasized plans for more AI investment. In June, the company sought US$80 billion in equity offerings, including from Berkshire Hathaway, and later expanded the total to US$84.75 billion due to strong demand. Warren Buffett's firm became a major new investor in the deal. Alphabet also sold a 100-year bond worth 1 billion pounds as part of a larger global debt raise totaling US$31.51 billion in February.

READ MORE: Bell sells 49.9 percent stake in cell towers to Caisse for $2.45 billion

READ MORE: Canada and EU to discuss tech alliance at Montreal summit

Nvidia plans to raise US$25 billion via a U.S. bond issuance, its first debt market move since 2021. The offering includes seven tranches of notes with maturities extending to 2056. SpaceX is looking to secure about US$10 billion in bank loans and US$30 billion in investment-grade debt specifically to purchase Nvidia chips, the Financial Times reported. CEO Elon Musk said during an August earnings call that SpaceX would build exclusively on Nvidia because "we think the Vera Rubin architecture is the best." Apollo Global Management is expected to lead the deal, with Pimco among the lenders in discussions.

Meta filed for its largest ever bond offering of up to US$30 billion last October to fund AI infrastructure. The company increased its capital spending plans by 73 per cent this year to deliver personalized AI across its social platforms. Salesforce priced a US$25 billion debt offering in March to help fund a major share repurchase, following the announcement of a US$50 billion buyback program. Oracle expects to raise US$45 billion to US$50 billion in 2026 through debt and stock to expand its cloud capacity. The company was sued in January by bondholders who alleged it failed to disclose its need for substantial additional debt to build AI infrastructure.

With files from BNN Bloomberg