The AI debt wave: a new force in global credit markets
Big Tech’s demand for capital is reshaping more than just the technology sector. In 2026, companies such as Amazon and Alphabet have become major borrowers in international bond markets, issuing debt in currencies including the Canadian dollar, Swiss franc and British pound.
A New Kind of Borrower
The scale of these deals has been striking. Alphabet raised around C$8.5 billion in Canada before Amazon followed with a record C$14 billion issuance. Alphabet has also issued a rare 100-year sterling bond.
These transactions show how hyperscalers are increasingly using global bond markets to finance their growing investment in artificial intelligence infrastructure.
The Ripple Effect
Large technology bond deals can influence the wider credit market by changing pricing and competing for investor capital.
For smaller issuers, this can mean higher borrowing costs or the need to delay bond sales until market conditions become more favourable. In Switzerland, Amazon and Alphabet now represent approximately 7.7% of the investment-grade credit index, highlighting how quickly their presence can reshape a smaller market.
This creates a new concentration risk for investors: problems affecting a handful of major technology companies could have a greater impact on smaller credit markets than on the much broader US market.
Not All Bad News
The growth of Big Tech issuance also brings opportunities. It gives investors access to highly rated technology companies and adds diversification to markets traditionally dominated by sectors such as banking and energy.
For issuers and investors alike, however, one thing is becoming increasingly clear: the financing decisions of a few global technology companies can now influence credit markets far beyond Silicon Valley.
