AI Investment Boom Drives US Corporate Bond Issuance to $2.46 Trillion in 2026

The United States corporate bond market is set for a significant expansion in 2026, with issuance expected to reach $2.46 trillion, driven largely by artificial intelligence (AI) hyperscalers. Major technology companies are increasing borrowing to fund data center and computing infrastructure expansions, according to Barclays analysts.

The rise in AI-related investments is shifting the landscape of the corporate bond market, with non-financial companies becoming some of the largest issuers. The five leading hyperscalers—Amazon, Alphabet's Google, Meta Platforms, Microsoft, and Oracle— issued $121 billion in corporate bonds in 2025, well above their historical average.

Analysts project that borrowing by these firms will accelerate further, with average annual issuance expected to reach about $140 billion over the next three years. Some estimates suggest that this figure could exceed $300 billion annually.

Why the Move Happened

The surge in corporate bond issuance is primarily driven by the capital-intensive nature of AI infrastructure. Companies are ramping up data center construction and procurement of advanced computing chips to support AI development.

This shift is also supported by the need for refinancing and merger-related funding. However, AI-driven capital spending is the key driver behind the sharp increase in supply.

Hyperscalers accounted for four of the five largest U.S. high-grade bond deals in 2025, with Meta's $30 billion issuance in October being the largest non-merger-related investment-grade bond deal in history.

How Markets Responded

The sharp increase in supply has led to wider credit spreads and rising costs of insuring hyperscaler debt through credit default swaps. Oracle has seen the sharpest increase in insuring costs since mid-2025, as concerns grow over the scale and pace of AI-related borrowing.

Legal risks are also rising alongside the borrowing boom. Investors recently filed a lawsuit against Oracle, alleging losses tied to inadequate disclosure about its need for additional debt to finance AI infrastructure expansion.

What Analysts Are Watching

Analysts are closely monitoring how banks and investors are adapting to the new wave of AI-driven corporate borrowing. The shift is placing leading AI companies among the top issuers in the U.S. investment-grade bond market, with some now surpassing major U.S. banks in borrowing.

The coming months will test the resilience of the bond market as AI-related borrowing continues to accelerate. With AI investment expected to remain a major force in 2026, market participants are assessing the potential risks and opportunities that come with this trend.