Tech companies tap debt, equity to fund AI and cloud expansion

Alphabet, Amazon, Microsoft and Meta have signaled that AI spending will not slow, while major technology companies increasingly tap debt markets and equity offerings to fund infrastructure. Combined spending by tech giants is set to exceed $730 billion this year, up from about $700 billion previously.

Meta has tightened its annual capital expenditure range to $135 billion-$145 billion and announced equity offerings of around $97.5 billion, including about $37.5 billion in stock sales priced last week. It is also eyeing at least $20 billion from a potential cross-border bond offering. SpaceX signed an agreement under which an Apollo Global Management affiliate will buy AI chips and servers to lease to the company, with total principal payments of about $40 billion; SpaceX expects fourth-quarter capital expenditure of $35 billion-$40 billion.

Amazon filed for an eight-part offering of floating- and fixed-rate notes, while Nvidia said it would raise $25 billion through a seven-tranche bond issuance. Oracle is planning to raise $20 billion through bonds and new shares, and expects to raise $45 billion-$50 billion in 2026 to build cloud capacity. Alphabet is selling €6 billion of bonds and increased its planned equity offerings to $84.75 billion. The article also lists debt, cash and upcoming bond payments for these companies, Salesforce and Verizon.