Big Tech is becoming hooked on debt to fuel its grandiose visions of AI dominance, a slight shift from years past, when aggressive investments were largely driven by internally generated cash.
The news: AI-related companies have issued about $140 billion in investment-grade bonds year to date, accounting for 49% of the total investment-grade issuance, according to new ***** ysis from the Kobeissi Letter.
In high-yield corporate bonds, AI-related companies have accounted for 38% of total issuance, or roughly $21 billion year to date.
The most headline-making debt raise of the year has been out of Alphabet (GOOG, GOOGL).
Alphabet became the first tech company in decades to issue a 100-year bond. In total, Alphabet raised $31.51 billion in February across its global bond offering, tapping sterling and Swiss franc markets alongside US dollar issuance.
The news: AI-related companies have issued about $140 billion in investment-grade bonds year to date, accounting for 49% of the total investment-grade issuance, according to new ***** ysis from the Kobeissi Letter.
In high-yield corporate bonds, AI-related companies have accounted for 38% of total issuance, or roughly $21 billion year to date.
The most headline-making debt raise of the year has been out of Alphabet (GOOG, GOOGL).
Alphabet became the first tech company in decades to issue a 100-year bond. In total, Alphabet raised $31.51 billion in February across its global bond offering, tapping sterling and Swiss franc markets alongside US dollar issuance.
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