AI debt sales reshape global corporate bond markets

• Amazon's 14.5 billion euro bond sale in March was the largest ever in the euro corporate bond market, while Alphabet set borrowing records across yen, Canadian dollar, Swiss franc, and sterling markets
• Morgan Stanley expects around 50 billion euros of total hyperscaler borrowing in euro debt this year, potentially making the U.S. overtake France as the euro zone's biggest source of corporate debt
• Non-dollar issuance by hyperscalers has doubled to 30% of their total bond funding in 2025, with investors eager to gain AI exposure in international bond markets where tech names previously had limited presence

Summary: AI Debt Sales Reshape Global Corporate Bond Markets

Big Tech companies are transforming corporate bond markets outside the U.S. as they raise massive capital to fund AI infrastructure investments. Google-parent Alphabet and Amazon are leading this trend, issuing record-breaking debt in multiple foreign currencies.

Key Figures and Deals:

• Amazon raised €14.5 billion ($16.88 billion) in March through an eight-part euro deal—the largest ever in that market
• U.S. non-financial corporate borrowing in Europe has exceeded €60 billion ($69.85 billion) this year
• Morgan Stanley projects €50 billion in total hyperscaler euro debt issuance for 2025
• Hyperscalers have doubled their non-dollar issuance to 30% of total bond funding this year

Market Records:

Alphabet set borrowing records across multiple currencies including yen, Canadian dollar, Swiss franc, and sterling markets. The company became the fourth-largest borrower in sterling corporate bonds and sixth-largest in Swiss francs after just one issuance round.

Strategic Rationale:

These "hyperscalers" are diversifying funding sources to finance trillion-dollar AI infrastructure investments, particularly data centers. Issuing foreign currency debt helps hedge global currency risk and often provides lower borrowing costs than U.S. markets, particularly in Europe.

Market Implications:

• The U.S. may soon overtake France as the euro zone's largest corporate debt source
• International corporate bond markets gain unprecedented exposure to technology sector
• Other U.S. companies are now viewing foreign bond markets more seriously
• Increased tech concentration creates potential volatility risk if AI sector faces challenges
• Investors seeking AI exposure are eager participants, particularly in markets historically lacking tech representation