AI Spending Surge Drives Up Big Tech Credit Risk

Alphabet, Amazon, Meta Platforms, Microsoft and Oracle are increasingly tapping debt, equity and long-term leases to finance the race for AI data centers. The companies retain strong cash generation and mostly investment-grade ratings, but spending is beginning to outpace internally generated funds. Moody’s Ratings has warned of a material shift in their balance-sheet structures, prompting investors to reassess returns, refinancing exposure and the risk embedded in an infrastructure buildout whose payoff remains uncertain.

By July 22, 2026, the five companies had raised nearly $302 billion through debt and equity, according to S&P Global Market Intelligence. Oracle’s five-year credit default swap spread climbed to 212 basis points, lifting the annual cost of insuring $10 million of its bonds to about $212,000. Moody’s Ratings also warned that unprecedented AI spending was threatening credit quality, underscoring how sharply investor concern has risen despite the sector’s still-strong overall financial position.