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Big Tech turns to debt and equity to fund AI and cloud buildout
Combined spending by Alphabet, Amazon, Microsoft and Meta is set to top $730 billion this year, rising from about $700 billion previously.
Big technology firms are increasingly tapping outside financing, using both debt and equity to expand AI and cloud infrastructure, a shift from the cash-centric approach Silicon Valley has long favored, according to Reuters, as cited by Yahoo Finance.
Reuters reports that Alphabet, Amazon, Microsoft and Meta signaled in April that AI spending would not slow, and that their combined AI and cloud spending is now projected to exceed $730 billion in 2026, up from about $700 billion previously.
The report points to a growing reliance on debt markets. Amazon is seeking at least $25 billion via a multi-part offering of floating and fixed-rate notes in maturities ranging from three to 40 years, after issuing C$14 billion of Canadian dollar-denominated notes in June, a record for that market, and preparing a Swiss franc offering for the first time.
Reuters also notes other large funding moves: Nvidia said it would raise $25 billion in the U.S., Salesforce priced a $25 billion debt offering to fund a major share buyback, and Oracle expects to raise $45 billion to $50 billion in 2026 in a combination of debt and equity, as part of broader AI and investment plans.