AI’s Debt Surge: Wall Street Finances Tech Giants’ CapEx

TREE NEWS update: Tech giants like Alphabet, Amazon, and Meta are increasingly turning to debt markets to fund massive AI infrastructure, with Morgan Stanley projecting AI-related debt issuance to reach nearly $570B in 2026. Nvidia’s partnership with Apollo, BlackRock, and others aims to mobilize $500B+ in third-party capital, positioning AI compute as a new investable asset class. This shift highlights growing concerns over free cash flow and capital efficiency, as companies like Oracle face downgrades amid heavy borrowing.