In 2025, five major hyperscalers—Google, Amazon, Meta, Microsoft, and Oracle—issued between $108 billion and $121 billion in corporate bonds for AI investments. This represents a significant increase from the annual average of $20 billion to $28 billion recorded in previous years.
According to an October 2026 IMF report, these companies now account for 10% of global investment-grade bond issuance, compared to less than 1% two years prior. The weighted-average maturity for these AI-linked bonds is 16 to 17 years, significantly higher than the 10-year market average.
Investors are currently demanding higher yields due to uncertainties regarding AI monetization. The IMF and Federal Reserve officials have expressed concerns that high leverage and concentrated exposure could amplify market volatility, urging caution to prevent potential downturns.
Economists at the Kansas City Fed noted in October 2026 that structural risks arise from novel, high-leverage financing vehicles. Federal Reserve officials previously warned in August 2026 that some of these financing structures could be considered too big to fail.
