Tech giants are flooding the corporate bond market to fund massive AI infrastructure buildout, overwhelming Wall Street capital markets and forcing Alphabet to source debt overseas. The AI capex arms race is driving record issuances as companies rush to secure GPU allocation and build compute clusters.
Demand for AI bonds reflects investor confidence in long-term AI monetization but also signals strain on traditional underwriting capacity. The shift highlights how AI capital intensity is reshaping corporate finance, with Treasury spreads widening as supply outpaces traditional buyer appetites.