Corporate borrowing in the technology sector reached a new record in 2025, driven by aggressive AI infrastructure investments. Major tech firms including Microsoft, Google, and Nvidia are leading the charge, fueling a surge in debt issuance across public and private markets.
- Global tech debt issuance reached $627 billion in 2025, a record high.
- Microsoft, Alphabet, and Nvidia led debt issuance with $78B, $65B, and $42B respectively.
- AI infrastructure and cloud expansion are the primary drivers of new borrowing.
- Debt issuance has tightened credit spreads and increased demand for tech bonds.
- Rising leverage raises concerns about long-term margin pressure if AI ROI lags.
- Financial institutions are seeing heightened activity in syndicated tech credit deals.
Global technology debt issuance climbed to $627 billion in 2025, surpassing previous highs and marking the largest annual volume in the sector’s history. This surge reflects growing corporate commitments to artificial intelligence, with companies deploying capital to expand data centers, acquire AI talent, and scale cloud computing capabilities. The top beneficiaries of this capital wave include Microsoft, which issued $78 billion in debt to support Azure AI growth; Alphabet (GOOGL), which raised $65 billion for its Gemini and cloud infrastructure initiatives; and Nvidia (NVDA), which issued $42 billion to finance semiconductor capacity and AI research. Amazon (AMZN) and Meta (META) also contributed significantly, with $53 billion and $48 billion in new debt respectively, primarily for AI-driven cloud and generative model development. The trend underscores a strategic pivot toward long-term AI competitiveness, even at the cost of elevated leverage. For investors, the data signals strong growth expectations, but also raises scrutiny over debt sustainability amid rising interest rates. Analysts note that while AI-driven revenue potential remains high, debt servicing costs could pressure margins if profitability lags. The issuance wave has also impacted credit markets, boosting demand for investment-grade tech bonds and narrowing spreads. Financial institutions, including JPMorgan and Goldman Sachs, are seeing increased activity in syndicated tech loan deals, particularly for companies with AI roadmaps. Meanwhile, investors are adjusting risk models to account for the shift in capital structure across the technology sector.