Key Takeaways
- • AI-linked debt issuance fell to $23bn in September 2026, less than half of August's total and well below the record $113bn issued in June, according to Morgan Stanley data cited by the Financial Times.
- • Companies have raised an estimated $466bn in AI-related debt so far in 2026, versus $101bn over the same period last year, with US investment-grade tech issuance of roughly $306bn between January and August.
- • Morgan Stanley attributes the slowdown mainly to the volume of financing completed earlier in the year, with investor concern over returns and local opposition to data centres also weighing on sentiment.
- • Roughly $18bn of loans tied to Oracle's Project Jupiter data centre in New Mexico were reportedly quoted privately at about 85 cents on the dollar after power-access difficulties.
- • A $60bn Broadcom/Anthropic financing package and a reported $40bn SpaceX request to buy Nvidia chips may face a more difficult syndication market.
Summary
Global AI-related debt issuance fell sharply in September 2026 as investors grew more cautious about rising leverage, infrastructure costs and uncertainty over returns on investment, according to a Financial Times report. Data compiled by Morgan Stanley shows AI-linked issuance dropped to $23bn in September, less than half the amount raised in August and far below the record $113bn issued in June. The figures cover public bond markets and private placements.
The slowdown follows a heavy borrowing wave to finance AI infrastructure, including data centres and advanced semiconductors. Companies have raised an estimated $466bn in AI-related debt so far in 2026, compared with $101bn over the same period in 2025. In the US investment-grade market, AI-related bond issuance stalled in September after major technology companies raised approximately $306bn between January and August. Morgan Stanley attributed the decline primarily to the volume of financing completed earlier in the year, while concerns over investment returns and growing opposition to data centre developments have also weighed on sentiment.
The larger supply has shifted negotiating leverage toward credit investors, raising borrowing costs for technology companies and infrastructure developers. John Aylward, founder of Sona Asset Management, said at the FT and Latham & Watkins Private Capital Summit in London that financing conditions were becoming more challenging as lenders approached their exposure limits. Several large transactions under development could be affected: Wall Street banks are arranging a $60bn financing package for Broadcom and Anthropic, and SpaceX is reportedly seeking $40bn to purchase Nvidia chips. Both are expected to be syndicated in the coming months.
Infrastructure constraints are also drawing scrutiny. Oracle's Project Jupiter data centre in New Mexico has faced difficulties securing power, placing approximately $18bn of associated loans under pressure; the loans were recently quoted privately at around 85 cents on the dollar, according to the FT. Jordan Rieger, managing principal and head of European credit at Monarch Alternative Capital, said the slowdown could give lenders an opportunity to reassess the structure and risks of AI financing facilities. Rob Dafforn, chief investment officer at distressed debt specialist Polus Capital, questioned whether investors were adequately pricing the risks of highly leveraged AI transactions, given uncertainty over development timelines and eventual returns. Polus has so far avoided the sector but has begun assessing existing AI-related financing for potential opportunities.
The slowdown follows a heavy borrowing wave to finance AI infrastructure, including data centres and advanced semiconductors. Companies have raised an estimated $466bn in AI-related debt so far in 2026, compared with $101bn over the same period in 2025. In the US investment-grade market, AI-related bond issuance stalled in September after major technology companies raised approximately $306bn between January and August. Morgan Stanley attributed the decline primarily to the volume of financing completed earlier in the year, while concerns over investment returns and growing opposition to data centre developments have also weighed on sentiment.
The larger supply has shifted negotiating leverage toward credit investors, raising borrowing costs for technology companies and infrastructure developers. John Aylward, founder of Sona Asset Management, said at the FT and Latham & Watkins Private Capital Summit in London that financing conditions were becoming more challenging as lenders approached their exposure limits. Several large transactions under development could be affected: Wall Street banks are arranging a $60bn financing package for Broadcom and Anthropic, and SpaceX is reportedly seeking $40bn to purchase Nvidia chips. Both are expected to be syndicated in the coming months.
Infrastructure constraints are also drawing scrutiny. Oracle's Project Jupiter data centre in New Mexico has faced difficulties securing power, placing approximately $18bn of associated loans under pressure; the loans were recently quoted privately at around 85 cents on the dollar, according to the FT. Jordan Rieger, managing principal and head of European credit at Monarch Alternative Capital, said the slowdown could give lenders an opportunity to reassess the structure and risks of AI financing facilities. Rob Dafforn, chief investment officer at distressed debt specialist Polus Capital, questioned whether investors were adequately pricing the risks of highly leveraged AI transactions, given uncertainty over development timelines and eventual returns. Polus has so far avoided the sector but has begun assessing existing AI-related financing for potential opportunities.
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