Oracle, Meta and Alphabet tap bond markets for tens of billions as AI spending jumps

Meta is seeking to raise up to $25 billion in a debt sale as its AI spending jumps¹. The offering includes Meta’s first-ever euro borrowing, for up to $15 billion². Alphabet closed its second euro deal of the year², launching a eurobond that tests AI debt markets⁴.

Oracle is raising $20 billion in bonds and stock for its AI buildout⁵. It headed a field of 17 issuers tapping the US investment-grade bond market⁵. Oracle shares dropped to a four-month low after the company revealed the $20 billion debt and equity plan, and co-founder Larry Ellison’s net worth fell $11 billion^8,9.

Across the sector, the big four hyperscalers are raising more than $131 billion in debt and equity for the AI buildout⁷.

Why it matters to investors

The scale of borrowing is testing credit markets. Alphabet, Meta and Oracle all either issued new bonds or reportedly planned to do so, with interest rates on the rise³. There are early signs that investors are approaching the limits of how much debt they can absorb⁴, and investors are increasingly nervous over an AI bubble³.

So far, demand has held. CoreWeave rose 5% and Oracle 4% after Oracle priced its $20 billion sale of stock and bonds⁶. The deal shows lenders still fund AI⁶. Oracle stock is still down 33% in 2026⁵.

The effect reaches government bond markets, and views differ on its direction. European Central Bank President Christine Lagarde said last week that debt issuance by hyperscalers had contributed to rising sovereign bond yields¹⁰, and the AI-related debt binge may pressure European bond markets¹⁰. One high-yield market briefing argued the reverse, saying hyperscaler euro issuance may push government bond yields down, not up¹¹.

Smaller neocloud companies are also seeking financing alongside the investment-grade hyperscalers⁷.

What to watch

The next test is Meta’s offering, including how much of the up to $25 billion¹ is raised in euros, where the company is borrowing for the first time².

Investors will watch whether the more than $131 billion being raised by the big four hyperscalers⁷ keeps finding buyers as interest rates rise³, and whether euro-market issuance by Alphabet and Meta^2,4 adds to pressure on European sovereign yields, as Lagarde said it has¹⁰.

Oracle’s share moves, from a four-month low on the announcement⁸ to a 4% gain once the deal priced⁶, show how closely equity investors are tracking each new financing.