Global AI debt issuance to top US$500 billion in 2026: Morgan Stanley

Tech companies that have long relied on strong cash flows are increasingly turning to debt financing

Published Wed, Jun 10, 2026 · 05:09 PM

Morgan Stanley estimates AI-related global debt issuance stood at nearly US$236 billion as of May 31, 2026, fourfold more than the same period last year. PHOTO: REUTERS

[NEW YORK] Morgan Stanley forecasts AI-related global debt issuance to more than double to nearly US$570 billion in 2026, pointing to rising bond supply and credit market activity as hyperscalers turn to alternative funding sources to meet massive AI-driven capex needs.

Tech companies that have long relied on strong cash flows are increasingly turning to debt financing as investment needs surge.

Morgan Stanley estimates AI-related global debt issuance stood at nearly US$236 billion as of May 31, 2026, fourfold more than the same period last year.

Hyperscalers Alphabet, Amazon, Microsoft and Meta are expected to spend US$700 billion in outlays this year.

Morgan Stanley expects issuance to ramp in second half of 2026, as hyperscaler capex surpasses US$1 trillion in 2027.

“Hyperscalers have been broadening their investor base through non-USD issuance,” the brokerage said.

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“Fundamental (economic) backdrop remains strong, but for now we think (bond) price action is being mostly driven by supply expectations,” Morgan Stanley added.

Financing for chip companies, which is seeing an uptick in public and private markets, is shifting to shorter-term deals that are fully repaid over time. REUTERS

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