Cloud Firms' 2026 Bond Sales Reach About $296 Billion as AI Debt Builds

Google, Amazon, Microsoft, Meta and Oracle had sold about $296 billion in bonds by Nov. 9, exceeding the earlier $250 billion full-year forecast as their combined third-quarter free cash flow turned negative.

The five companies priced five bond offerings worth about $67 billion in less than a week beginning Oct. 29. Their 2026 bond sales equaled about 36% of estimated capital spending of $820 billion, compared with 33% in an earlier estimate.

The companies’ combined third-quarter capital spending exceeded their operating cash flow, leaving free cash flow negative. Some borrowing may have been brought forward from 2027 into this year.

Capital spending is projected at about $1.26 trillion in 2027, with debt covering roughly 35% of the total. Projected direct bond issuance of about $440 billion in 2027 would exceed the 2026 figure by about $140 billion, alongside roughly $300 billion in project-level investment-grade and high-yield bonds.

Debt is projected to cover about 25% of capital spending by 2030. Borrowing is not projected to peak in 2026, and credit-spread risks are tilted toward widening before early December. Premiums on new AI-related bonds were as high as 18 basis points, near levels associated with junk-rated debt.