Tech megacaps turn to debt markets as $750 billion AI buildout tests cash reserves
Amazon, Alphabet, Microsoft and Meta are projected to deploy a combined $750 billion in AI infrastructure capex this year, up more than 80% from 2025, forcing increased reliance on debt markets and making the traditionally rate-insulated sector newly sensitive to Federal Reserve policy and bond market conditions.
Amazon, Alphabet, Microsoft and Meta are projected to deploy a combined $750 billion in AI infrastructure capex this year, up more than 80% from 2025, according to analysis cited by CNBC. The buildout is forcing tech megacaps to tap debt markets at scale, with Nvidia, Oracle, Amazon, Alphabet and Meta issuing tens of billions of dollars in bonds, while SpaceX is preparing to meet investors about a bond offering of at least $20 billion.
The shift marks a structural break for companies that historically shrugged off Federal Reserve policy. Peter Boockvar, chief investment officer of One Point BFG Wealth Partners, told CNBC that tech investors now "need to listen to what Kevin Warsh has to say" and "start paying attention to what the inflation stats are and how the U.S. Treasury market responds to it." The 10-year yield is trading near 4.45% after the Fed indicated the possibility of a rate hike in 2026 at Warsh's first press conference as chairman on Wednesday.
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