The rapid development of artificial intelligence is transforming the technology industry and the way companies raise money. Building powerful AI systems requires enormous investment in data centres, computing equipment and digital infrastructure.

While major technology companies are spending billions to expand their AI capabilities, investors are increasingly questioning which businesses will benefit from this transformation.

A new analysis published by the Centre for Economic Policy Research (CEPR) reveals that the AI boom is already influencing corporate bond markets, creating financial advantages for some companies and additional challenges for others.

Technology Giants Are Borrowing More

The world's largest technology companies have traditionally relied heavily on their own cash reserves to finance expansion. However, the scale of AI investment is pushing them towards corporate bonds.

Researchers Marco Albori and Andrea Zaghini examined five major technology companies: Alphabet, Amazon, Meta, Microsoft and Oracle. These businesses, often called hyperscalers, operate extensive cloud infrastructure and are investing heavily in artificial intelligence.

In 2025, they issued approximately $108 billion in bonds, compared with an annual average of around $20 billion in 2023 and 2024. Borrowing accelerated further in early 2026, when the companies raised more than $56 billion within the first weeks of the year.

Why Are Investors Offering Better Terms?

The researchers analysed corporate bond placements in the United States between January 2020 and February 2026. They used the public launch of ChatGPT in November 2022 as a turning point in investor expectations about artificial intelligence. Their findings suggest that major AI infrastructure providers gained a significant financing advantage.

After the launch, bond yields for hyperscalers declined by approximately 29 basis points relative to those of other non-financial companies, after accounting for relevant differences and market conditions. One basis point equals 0.01 percentage points. Lower bond yields generally mean that companies can borrow at more favourable rates.

Investors appear to believe that spending on AI infrastructure could generate substantial future profits, making these businesses attractive borrowers despite their increasing debt.

Software Companies Face New Pressure

The picture looks different for traditional software businesses. Generative AI can automate tasks previously performed through specialised applications, potentially weakening demand for certain software products.

The researchers found that the financing advantage enjoyed by hyperscalers reached approximately 42 basis points when compared specifically with software companies. This does not mean every software business is losing money or struggling to survive.

Instead, the results suggest that investors are increasingly distinguishing between companies providing essential AI infrastructure and those facing potential disruption. Businesses perceived as more vulnerable may encounter relatively expensive borrowing conditions.

Could The AI Boom Increase Market Risks?

Cheaper financing gives leading technology companies more opportunities to expand their infrastructure and strengthen their market positions. However, this advantage could also increase the concentration of investment among a relatively small group of businesses.

Companies without similar access to affordable capital may find it harder to compete. Another concern is the growing amount of corporate debt linked to AI investment.

If expectations about AI adoption or future profitability weaken, investors could reassess the value and risk of these bonds. Such changes could increase borrowing costs and create financial pressure for companies that have committed substantial resources to expansion.

What Happens Next?

The researchers emphasise that bond markets are already responding to expectations about the potential winners and losers of artificial intelligence. However, these expectations are not guarantees of future performance.

As AI becomes more widely adopted, the financial advantages currently enjoyed by major infrastructure providers could change.

Monitoring corporate borrowing, investor confidence and the sustainability of AI-related investment will therefore become increasingly important.

The study highlights a broader economic reality: the AI revolution is reshaping not only technology, but also the financial conditions that determine which companies can grow.