The companies driving the A.I race are stuffed with debt, bond investors starting to demand higher premiums
A.I DEBT BUBBLE
Amazon (AMZN): The highest total debt at $160.4 billion.
Microsoft (MSFT): Total debt stands at $120.4 billion,
Meta Platforms (META): $51.1 billion in total debt
Alphabet (GOOG/GOOGL): $44.2 billion total debt,
CoreWeave (CRWV): Total debt at approximately $14 billion (extreme leverage- Insurance spreads have skyrocketed and default bets sit at 40% next 5 years )
Oracle (ORCL): Total debt reached $111.6 billion (insurance spreads have rocketed recently)
Google, Meta, Amazon, Microsoft and Oracle issued $121 billion in debt to fund AI bets — 4x than usual: Report
According to a new analysis by the Bank of America, the big five artificial intelligence (AI) hyperscalers have been increasingly funding their AI investments through debt, as they pledge more money into the latest technology in hopes of scaling their business.
Five AI hyperscalers, namely Google, Meta, Amazon, Microsoft and Oracle, are increasing debt this yea, four times than that of usual.
According to a new analysis by the Bank of America, the big five artificial intelligence (AI) hyperscalers have been increasingly funding their AI investments through debt, as they pledge more money into the latest technology in hopes of scaling their business.
Bank of America analyst Yuri Seliger said that Google, Meta, Amazon, Microsoft and Oracle together have already issued $121 billion in debt this year.
In his research note dated November 17, Seligar said that out of the $121 billion debt, $27 billion alone was used to fund the new data centre of Meta at Richland Parish in Los Angeles. Additionally, Amazon has also issued a new debt amounting $15 billion on November 17.
https://www.livemint.com/companies/news/google-meta-amazon-microsoft-and-oracle-issued-121-billion-in-debt-to-fund-ai-bets-4x-than-usual-report-11763647421194.html
CoreWeave shows what an extreme version of the same dynamic looks like: ~$14 billion in debt, interest expense vastly outpacing operating income. If a “challenger” platform is already strained, it suggests the broader debt-heavy ecosystem may be more fragile than it appears.
https://www.theverge.com/ai-artificial-intelligence/822011/coreweave-debt-data-center-ai
Tech giants issuing debt are now paying extra spread (10-15 basis points over previous) on new issues. That hints that credit markets are beginning to question the quality of the debt. Higher borrowing costs accelerate the “bubble” risk you described.
https://www.reuters.com/business/retail-consumer/jitters-over-ai-spending-set-grow-us-tech-giants-flood-bond-market-2025-11-21/
https://citizenwatchreport.com/the-companies-driving-the-a-i-race-are-stuffed-with-debt/