Alphabet, Google’s parent company, entered the U.S. high-grade bond market, selling $20 billion in senior unsecured notes. Analysts predict a record-breaking year for corporate debt issuance by AI companies. Oracle recently disclosed a $25 billion note sale, highlighting the trend of increased borrowing among AI companies.

The five major AI hyperscalers issued $121 billion in U.S. corporate bonds last year, with significant bond sales from Oracle, Meta, Alphabet, and Amazon. Moody’s Ratings forecasts the Big Six U.S. hyperscalers to spend $500 billion this year, leading to significant corporate bond issuance.

Barclays analysts expect U.S. corporate bond issuance to reach $2.46 trillion this year, an 11.8% increase from 2025. Morgan Stanley estimates hyperscaler bond issuance could reach $400 billion, driving up to $2.3 trillion in total paper issuance this year to fund projected spending.

Alphabet’s bond sales, along with Oracle’s, signify a significant capex spend in the AI sector. The surge in AI spending has impacted software companies, causing a recent share price decline. AI technology is reshaping the market landscape, impacting cash flows of traditional software companies, according to industry experts.

Read more at Yahoo Finance: Alphabet’s debt raise fuels forecasts for record year in corporate bond sales