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

Morgan Stanley forecasts AI-related global debt issuance to more than double to nearly $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 $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 $700 billion in ​outlays this year.

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

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

"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, it said.