Morgan Stanley: Global AI-related bond issuance could approach $570 billion in 2026

According to the latest forecast from Morgan Stanley, global issuance of bonds related to artificial intelligence (AI) could approach $570 billion in 2026, more than doubling last year's figure.

Given that capital expenditures by hyperscalers are expected to exceed $1 trillion by 2027, Morgan Stanley believes the pace of bond issuance will accelerate further in the second half of this year.

As of the end of May this year, approximately $236 billion in AI-related debt financing had been issued globally, roughly four times the amount raised during the same period last year.

As tech companies' spending on AI continues to swell and increasingly outpaces what their own profits can cover, debt financing is becoming an increasingly important source of funding for them.

Morgan Stanley noted that to diversify their funding channels, hyperscalers are increasingly issuing bonds outside the U.S. dollar market. For instance, giants such as Google's parent company Alphabet and Amazon have already issued large amounts of euro-denominated bonds in the European market. (Cailianshe)