Tech companies tap debt markets to fund AI and cloud expansion

A woman walks past the logo for Google at the China International Import Expo in Shanghai. THE CANADIAN PRESS/AP-Ng Han Guan

The world’s largest technology companies are tapping debt markets, as they seek to bolster their artificial intelligence infrastructure, marking a shift for Silicon Valley firms that typically relied on cash to fund their investments.

Last month, Alphabet, Amazon, Microsoft and Meta signaled that spending on AI would not slow down, with the tech giants’ combined spending now set to exceed US$700 billion this year, up from about $600 billion previously.

The AI boom has entered a “more dangerous phase,” marked by exponentially rising investments in physical infrastructure and growing reliance on outside capital, according to an analysis by Bridgewater Associates in February.

Amazon

Amazon is preparing to issue a six-part bond offering in Swiss franc denomination for the first time, a person familiar with the matter told Reuters on Monday.

Separately, the e-commerce giant is looking to raise about $37 billion in an 11-part bond sale, according to a term sheet seen by Reuters in March.

Salesforce

Cloud software provider Salesforce said in March it has priced a $25 billion debt offering to help fund a major share buyback. The company announced a $50 billion repurchase program and lifted its dividend by 5.8 per cent in February.

The company had last issued U.S. bonds in 2021, securing $8 billion to support its acquisition of communication platform Slack.

Oracle

Oracle said in February it expects to raise $45 billion to $50 billion in 2026 in a combination of debt and stock to build additional capacity for its cloud infrastructure.

The cloud company was sued in January by bondholders who said they suffered losses because the company failed to disclose it needed to sell significant additional debt to build out its AI infrastructure.

In September 2025, the company, chaired by Larry Ellison, filed to raise about $18 billion in debt in a six-part offering to fund AI infrastructure, after investing billions in 2025.

Alphabet

Google-parent Alphabet plans to sell Japanese yen-denominated bonds for the first time, it disclosed in a filing on Monday.

The issuance is expected to total several hundred billion yen, a source with direct knowledge of the deal said.

The tech giant sold a rare, 100-year bond worth 1 billion pounds ($1.36 billion) in February, as part of a global $31.51 billion debt raise.

The company sold 5.5 billion pounds worth of sterling bonds in a five-part deal, according to the final term sheet seen by Reuters.

The company had in November last year filed to raise $17.50 billion in debt in the U.S. and 6.5 billion euros ($7.66 billion) in Europe, for general corporate purposes, including the payment of outstanding debt.

Verizon

The U.S. carrier had in November filed to raise about $11 billion in the corporate bond market to help fund its $20 billion acquisition of fiber-optic internet provider Frontier Communications, which it closed in January.

Meta Platforms

The Facebook owner had in October last year filed for its largest bond offering ever, of up to $30 billion, to finance a costly AI infrastructure expansion.

Meta has been navigating significant cost pressures from AI investments, boosting its capital spending plans by 73% this year to offer personalized AI to its large social media user base.

Data compiled by LSEG; SEC filings

(Reporting by Anhata Rooprai, Zaheer Kachwala and Johann M Cherian in Bengaluru; Editing by Leroy Leo, Arun Koyyur and Anil D’Silva)