AI Debt Issuance to Double to $570 Billion by 2026: Morgan Stanley

Morgan Stanley predicts global AI-related debt issuance will more than double to nearly $570 billion by 2026. Big cloud companies are turning to more financing options to fund AI investments.

By May 31, 2026, AI debt had already hit $236 billion, about four times last year's level. Alphabet, Amazon, Microsoft, and Meta are expected to spend $700 billion this year, with spending topping $1 trillion by 2027.

Morgan Stanley says these firms are using non-dollar bonds to attract more investors, and chip companies are also raising more money. Bond prices are mainly driven by supply expectations, and deals are shifting to shorter-term, phased repayment structures.