Tech companies tap debt, equity to fund AI and cloud expansion
QQQ•Major technology companies are turning to debt and equity to finance AI and cloud expansion, with combined spending set to exceed $730 billion this year. Oracle plans to raise $20 billion through bonds and new shares, while companies including Meta, Amazon, Nvidia and Alphabet have also pursued major financings.
1. Funding AI expansion
Alphabet, Amazon, Microsoft and Meta have signaled that AI spending will not slow, as technology companies increasingly tap debt markets and raise equity to finance infrastructure. Combined spending by tech giants is set to exceed $730 billion this year, up from about $700 billion previously.
2. Company financing plans
Meta plans to raise up to $95 billion through a $35 billion offering of common and convertible preferred stock and a share-sale program of up to $60 billion after its Class C shares begin trading in early 2027. Amazon has filed for an eight-part offering of floating- and fixed-rate notes, while Nvidia said in June it would raise $25 billion through a US bond issuance. Salesforce priced a $25 billion debt offering in March to help fund a share buyback.
3. Oracle and Alphabet
Oracle is planning to raise $20 billion through bonds and new shares, and said in February it expects to raise $45 billion to $50 billion in 2026 through debt and stock to build cloud infrastructure. Alphabet is looking to raise $20 billion to $25 billion through a US bond offering; it also increased the size of its equity offerings to $84.75 billion after strong investor demand.
