Morgan Stanley forecasts AI-related global debt issuance to more than ​double ⁠to nearly $570 billion in 2026, pointing to ‌rising bond supply and credit market activity as hyperscalers ​turn to alternative funding sources to meet massive AI-driven capex ​needs.

Here are ​some details:

* Tech companies that have long relied on strong cash flows are ⁠increasingly turning to debt financing as investment needs surge

* Morgan Stanley estimates AI-related global debt issuance stood at nearly $236 billion as of ​May ‌31, 2026, fourfold ⁠more than the ⁠same period last year

* Hyperscalers Alphabet, Amazon, Microsoft and ​Meta are expected to ‌spend $700 billion in outlays this ⁠year

* Morgan Stanley expects issuance to ramp in second half of 2026, as hyperscaler capex surpasses $1 trillion in 2027

* "Hyperscalers have been broadening their investor base through non-USD issuance," the brokerage said

* "Fundamental (economic) backdrop remains strong, but for now we think (bond) price action is ‌being mostly driven by supply expectations," Morgan Stanley ⁠added

* Financing for chip companies, ​which is seeing an uptick in public and private markets, is shifting to shorter-term ​deals that are ‌fully repaid over time - Morgan ⁠Stanley (Reporting by Kanishka ​Ajmera in Bengaluru; Editing by Mrigank Dhaniwala)