United States tech giants boost debt for AI buildout | JQJO

United States-based technology giants Alphabet, Amazon, Meta Platforms, Microsoft and Oracle have dramatically escalated their borrowing to fund an intensive buildout of artificial intelligence infrastructure. Over the past five years, these hyperscalers have added about $350 billion to their collective debt, roughly doubling their total obligations since 2021, according to data compiled by Bloomberg. The increased leverage reflects the vast capital required to maintain leadership in AI and cloud services, even as the companies continue to generate substantial cash from core businesses such as digital advertising, e-commerce and cloud computing operations.

United States capital markets have become a crucial source of funding as the firms turn to public debt issuance in multiple currencies, using their strong credit ratings to secure relatively low borrowing costs. The money is being deployed into a sweeping physical expansion that includes massive new data centers, specialized real estate and large purchases of high-end Nvidia GPUs needed to train and run AI models. Collectively, the five companies have signaled plans to spend as much as $725 billion on capital expenditures this year alone, underscoring the unprecedented scale and capital intensity of the AI data center race.