AI's Borrowing, by the Numbers
If you've been following AI news lately, you may have noticed tech companies are borrowing more money… like a lot more. Some see it as a warning sign.
Borrowing on its own is ordinary. Companies of every size issue bonds to fund growth, and big tech has done it for years. The part that’s noteworthy is how much money is being borrowed compared to previous years, and how fast that amount’s increasing.
From 2020 through 2024, five of the biggest Tech companies sold about $28 billion of bonds a year on average. In 2025, that number jumped to $121 billion, more than four times the previous average.(1) This year, they blew past 2025’s total before the summer was even over.(2)
And that only covers bonds. Then you need to factor in that a growing share of the money comes through private lenders and separate partnerships, and those separate partnerships can keep the debt off the companies' books.(3) The Bank of England has described the current pace of AI investment as historically unprecedented, and noted the borrowing behind it has picked up quickly.(3) We can see why.
What happens next is hard to say. Many of the biggest borrowers may be highly profitable, but Federal Reserve officials are keeping a close eye on the borrowing regardless.(4)
We can't tell you how this chapter ends, and we'd be wary of anyone who claims they can. What we can do is stay aware: know what you own, including any bond funds, and keep a plan that doesn't hinge on one industry's borrowing paying off. With how complicated things are getting, successfully doing that is an achievement on its own.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Laurel Financial Group is a separate entity from WFAFN.
This material is intended for informational and educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.
Data and figures in this article are as of October 2026 and are drawn from sources published between January and October 2026. Market conditions change, and some figures may have changed since publication.
Bonds are subject to market, interest rate, and credit risk. Bond prices generally fall when interest rates rise, and bonds sold before maturity may be worth more or less than their original cost. Bond funds are subject to similar risks, and their value will fluctuate.
(1) Average bond issuance from 2020 to 2024, and 2025's total, for Amazon, Alphabet, Meta, Microsoft and Oracle. Reuters, citing BofA Securities, January 15, 2026. https://finance.yahoo.com/news/ai-hyperscalers-drive-higher-us-225314460.html
(2) 2026 issuance passing 2025's total. Reuters analysis of LSEG data, July 29, 2026. Reuters counts Amazon, Alphabet, Meta and Oracle across all currencies (about $194 billion through July 7, 2026, versus about $108 billion in all of 2025), so its 2025 figure differs from the BofA count above. https://kfgo.com/2026/07/29/hyperscaler-debt-binge-pushes-yields-up-as-investor-demand-cools/
(3) Private credit's growing share of AI financing, off balance sheet arrangements, and the pace of AI investment and borrowing. Bank of England, Financial Stability Report, July 2026. https://www.bankofengland.co.uk/-/media/boe/files/financial-stability-report/2026/financial-stability-report-july-2026.pdf
(4) Federal Reserve officials on AI borrowing and financial stability. Reuters, August 6, 2026. https://kfgo.com/2026/08/06/furious-pace-of-ai-investment-on-some-fed-officials-radar-now/
Borrowing on its own is ordinary. Companies of every size issue bonds to fund growth, and big tech has done it for years. The part that’s noteworthy is how much money is being borrowed compared to previous years, and how fast that amount’s increasing.
From 2020 through 2024, five of the biggest Tech companies sold about $28 billion of bonds a year on average. In 2025, that number jumped to $121 billion, more than four times the previous average.(1) This year, they blew past 2025’s total before the summer was even over.(2)
And that only covers bonds. Then you need to factor in that a growing share of the money comes through private lenders and separate partnerships, and those separate partnerships can keep the debt off the companies' books.(3) The Bank of England has described the current pace of AI investment as historically unprecedented, and noted the borrowing behind it has picked up quickly.(3) We can see why.
What happens next is hard to say. Many of the biggest borrowers may be highly profitable, but Federal Reserve officials are keeping a close eye on the borrowing regardless.(4)
We can't tell you how this chapter ends, and we'd be wary of anyone who claims they can. What we can do is stay aware: know what you own, including any bond funds, and keep a plan that doesn't hinge on one industry's borrowing paying off. With how complicated things are getting, successfully doing that is an achievement on its own.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Laurel Financial Group is a separate entity from WFAFN.
This material is intended for informational and educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.
Data and figures in this article are as of October 2026 and are drawn from sources published between January and October 2026. Market conditions change, and some figures may have changed since publication.
Bonds are subject to market, interest rate, and credit risk. Bond prices generally fall when interest rates rise, and bonds sold before maturity may be worth more or less than their original cost. Bond funds are subject to similar risks, and their value will fluctuate.
(1) Average bond issuance from 2020 to 2024, and 2025's total, for Amazon, Alphabet, Meta, Microsoft and Oracle. Reuters, citing BofA Securities, January 15, 2026. https://finance.yahoo.com/news/ai-hyperscalers-drive-higher-us-225314460.html
(2) 2026 issuance passing 2025's total. Reuters analysis of LSEG data, July 29, 2026. Reuters counts Amazon, Alphabet, Meta and Oracle across all currencies (about $194 billion through July 7, 2026, versus about $108 billion in all of 2025), so its 2025 figure differs from the BofA count above. https://kfgo.com/2026/07/29/hyperscaler-debt-binge-pushes-yields-up-as-investor-demand-cools/
(3) Private credit's growing share of AI financing, off balance sheet arrangements, and the pace of AI investment and borrowing. Bank of England, Financial Stability Report, July 2026. https://www.bankofengland.co.uk/-/media/boe/files/financial-stability-report/2026/financial-stability-report-july-2026.pdf
(4) Federal Reserve officials on AI borrowing and financial stability. Reuters, August 6, 2026. https://kfgo.com/2026/08/06/furious-pace-of-ai-investment-on-some-fed-officials-radar-now/