AI investments by tech giants bank executives expected increased investment-grade debt issuance next year due to M&A activity.

The top five U.S. technology firms may need over $100 billion in finance by 2026, says Meghan Graper, Barclays global head of debt capital markets.

Debt markets are helping Silicon Valley corporations build AI-ready data centers.
Four “hyperscalers” have issued around $90 billion in bonds since September.

Offerings will increase due to the large M&A backlog that may need finance. Investment-grade corporations announced $175 billion in M&A transactions, up from $75 billion last year.

The executives claimed investors don’t mind circular financing for large tech and AI companies like OpenAI. JPMorgan Chase (JPM.N) worldwide co-head of investment grade financing Marc Baigneres remarked, “If you look at what we finance, the credit backs assets that exist; they are in the middle of the desert somewhere” referring to data centers.