Tech Giants' AI Financing Surge Creates Capital Competition With Governments

Technology companies are becoming the largest net issuers of long-term debt in capital markets, surpassing government borrowing as artificial intelligence infrastructure demands reshape global finance. As hyperscalers—including Meta, Alphabet, Amazon, Microsoft, and Oracle—rush to fund massive AI and data center buildouts, they are absorbing a growing share of available investment capital that historically flowed to sovereign borrowers, raising concerns about crowding-out effects and upward pressure on government bond yields.