Tech Giants' Debt Doubles to $350B in Five Years Amid AI Infrastructure Investment

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According to Bloomberg data compiled in a recent analysis, the five largest U.S. data center investors—Alphabet, Amazon, Meta, Microsoft, and Oracle—have added approximately $350 billion in debt over the past five years to fund artificial intelligence infrastructure expansion. However, signs of market strain emerged this week as Amazon's $25 billion bond offering faced unusual weak demand, suggesting capital markets' capacity to absorb sustained tech giant financing may have limits. Despite rising debt, interest expenses for these five companies exceeded $10 billion last year, more than double 2019 levels, but remain manageable relative to their cash generation. On Thursday, S&P downgraded Oracle's credit rating to the lowest investment grade level, citing the company's accelerating AI capital expenditure.
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