Business · Markets · 2 hrs ago
Tech giants’ AI borrowing adds pressure to long-term US bonds
Six major tech companies have issued over $180 billion in bonds this year as they raise money for artificial intelligence expansion.
The group includes Alphabet, Amazon, Meta, Microsoft, Oracle and SpaceX.
They are borrowing at long maturities, including 30- and 50-year terms, and Alphabet issued a bond due in 2126.
Their long-term bonds compete with US Treasuries for the same investors, according to investment firm Vontobel.
That competition can leave less investor demand for US government bonds and may raise the country's borrowing costs.
Vontobel says tech borrowing is adding pressure at the long end of the bond market, but is not the main cause.
The firm's assessment points to US deficits and rising debt as deeper pressures on government borrowing costs.
Six major technology companies have issued more than $180 billion in bonds so far in 2026 to help fund artificial intelligence development.
Vontobel says their preference for long-term debt is increasing competition with US Treasury bonds for investor demand.
The companies could issue a further $250 billion in the final part of the year, bringing their total 2026 borrowing to about $400 billion.
Vontobel says the borrowing is adding pressure at the long end of the Treasury yield curve, while structural factors remain the main drivers.
- Who
- Alphabet, Amazon, Meta, Microsoft, Oracle and SpaceX have issued the bonds.
- What
- Their borrowing to fund AI development is competing with US Treasury bonds for investor demand, particularly at long maturities.
- When
- In 2026; the article was published on October 23.
- Where
- The US bond market.
- Why
- The companies are raising debt to finance AI development. Vontobel says long-term debt matches the extended economic life of data-centre assets.
This story does not have two clearly opposing sides.
Alphabet issued £1 billion in bonds maturing in 2126.
Alphabet, Amazon, Meta, Microsoft, Oracle and SpaceX had issued more than $180 billion in bonds.
The companies were estimated to issue a further $250 billion in bonds.
- Issuers
- Alphabet, Amazon, Meta, Microsoft, Oracle and SpaceX
- Bonds issued so far in 2026
- More than $180 billion
- Estimated further issuance in 2026
- $250 billion
- Estimated total issuance in 2026
- About $400 billion
- Alphabet bond maturity
- 2126
- US federal debt
- More than $40 trillion
What people are saying
the most interesting thing is their preference for the long end of the curve
Data-centre assets have a long economic life, which makes 30- or 50-year debt a natural match in terms of duration
The fiscal situation of the US shows no credible path to consolidation