$1 Trillion AI Debt Boom Pushes Beyond Stocks

The AI boom is driving companies to take on massive amounts of debt, pushing the $1 trillion funding problem beyond the stock market and into global credit markets.

UBP estimates that Microsoft, Amazon, Alphabet, Meta Platforms, and Oracle will spend between $1 trillion and $1.3 trillion on capital expenditures in 2027, creating a significant financing gap that earnings alone cannot cover.

The numbers show that the five hyperscalers spent around $820 billion on capex in 2026, compared to about $750 billion in operating cash flow. In 2027, projected spending rises to $1 trillion to $1.3 trillion, making borrowing unavoidable.

Bonds are taking much of the load, but project finance, securitization, leveraged loans, and chip-backed financing are also supporting the AI buildout.