Analysis of Tech Giants' $88B Debt Issuance for AI Investments and Associated Risks

This analysis is based on a Reddit discussion [4] reporting that Google, Amazon, Meta, Microsoft, and Oracle collectively issued $88B in debt over three months to fund AI investments, exceeding their total debt issuance over the prior three years. Oracle raised $18B in September [3] for AI infrastructure, while Google raised $17.5B in U.S. debt plus €6.5B ($7.49B) in Europe [3] for AI-related spending. Oracle’s stock has declined 29.31% in a month [0] due to rising credit risk—its CDS costs tripled to $111k/year [2] and it is one level above junk rating [4]. In contrast, Google maintains strong financial health with a current ratio of1.75 and net profit margin of32.23% [0], supported by $50B annual FCF and $100B cash reserves [4].

Cross-domain correlations reveal the AI arms race is driving debt issuance across major tech companies [4], with Oracle’s risk profile emerging as a barometer for AI debt risk. The contrast between Oracle’s weak balance sheet and Google’s strong financial position highlights the divergent paths tech giants are taking to fund AI investments. Debt is a cheaper financing option than equity [4], but this advantage is mitigated for companies with near-junk ratings.

• Oracle’s rising credit risk: Near-junk rating, tripled CDS costs [2], and expected doubling of net adjusted debt to $290B by FY28 [1] warrant attention.
• AI bubble concerns: Debt-funded AI spending without clear profitability could lead to market corrections [3].
• Bond market pressure: The flood of AI-related bond issuances may widen corporate credit spreads [3].

• AI infrastructure growth: Upstream suppliers (semiconductors, data center equipment) may benefit from increased AI spending.
• Cost advantages: Strong balance sheet tech companies can leverage cheaper debt to fund AI investments while maintaining financial stability.

• Tech giants issued $88B in debt over three months (2025) to fund AI investments [4].
• Oracle raised $18B for AI infrastructure [3] and faces rising credit risk (tripled CDS costs [2], near-junk rating [4]).
• Google raised over $25B for AI spending [3] and has strong financials (32% net margin [0], $50B annual FCF [4]).
• Oracle’s stock declined 29.31% [0], while Google’s stock rose 22.57% [0] in the past month.
• AI arms race is a key driver of debt issuance across major tech companies [4].