Morgan Stanley expects global AI-related debt issuances to reach around $570 billion by 2026, after issuances reached approximately $236 billion by the end of May, placing the market on a growth trajectory of nearly four times that of the previous year.

The bank indicated its expectations that net issuances of bonds by major companies operating cloud computing and AI platforms will rise by between 30% and 50% during 2026, after their investment-grade bond issuances exceeded $100 billion in 2025.

Technological booms…

The Bank for International Settlements warned that the race to invest in AI infrastructure is set to surpass previous technological booms in terms of size and speed, which could exacerbate financial disruptions if these investments do not yield productivity gains that justify their enormous costs.

The bank explained that the reliance of technology companies and AI developers on borrowing increases risks within the sector, especially with expectations that AI-related spending will reach around $6 trillion by 2030. It noted that competition in a market where returns are concentrated among a limited number of companies drives the sector to over-invest, which could double potential losses in the event of a slowdown in demand or if productivity gains fall short of expectations.

Morgan Stanley expects global debt issuances related to artificial intelligence to reach around $570 billion by 2026, after issuances reached approximately $236 billion by the end of May, placing the market on a growth trajectory of nearly four times that of the previous year.

The bank indicated its expectations that net issuances of bonds by major companies operating cloud computing and artificial intelligence platforms will rise by between 30% and 50% during 2026, after their investment-grade bond issuances exceeded $100 billion in 2025.

Technological Booms

The Bank for International Settlements warned that the race to invest in artificial intelligence infrastructure is set to surpass previous technological booms in terms of size and speed, which could exacerbate financial disruptions if these investments do not yield productivity gains that justify their enormous costs.

The bank explained that the reliance of technology companies and AI developers on borrowing increases risks within the sector, especially with expectations that spending related to artificial intelligence will reach around $6 trillion by 2030. It noted that competition in a market where returns are concentrated among a limited number of companies drives the sector to over-invest, which could double potential losses in the event of a slowdown in demand or if productivity gains fall short of expectations.