Tech companies tap debt, equity to fund AI and cloud expansion
QQQ•Major technology companies are turning to debt and equity to support AI and cloud investments, with their combined spending set to exceed $730 billion this year, up from about $700 billion previously.
1. Spending and financing
Alphabet, Amazon, Microsoft and Meta signaled in April that their AI spending would not slow down. Combined spending by tech giants is now set to exceed $730 billion this year, as companies increasingly tap debt markets and raise equity to fund infrastructure.
2. Large financing plans
SpaceX is reportedly looking to raise about $10 billion in bank loans and $30 billion in investment-grade debt to buy Nvidia chips. Amazon is reportedly seeking at least $25 billion from the U.S. bond market. Alphabet is looking to raise between $20 billion and $25 billion through a U.S. bond offering.
3. Other company plans
Nvidia said in June it would raise $25 billion through a U.S. bond issuance. Oracle expects to raise $45 billion to $50 billion in 2026 through debt and stock to build cloud infrastructure, while Meta filed last year for a bond offering of up to $30 billion to finance AI expansion.
