Learn how AI companies are funding their grand ambitions and how investors can still take part in the AI boom.
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Some say AI is the biggest invention since sliced bread - and right now every tech giant is lining up for a slice.
But while the spotlight is on AI stocks, another market is quietly helping fund a big chunk of this revolution… the bond market.
Traditionally, tech companies would fund new innovations straight from their cash stash without taking on any additional debt.
But in the AI era? Training models and running cloud services means a heap of costs. Think: building massive data centres stuffed with servers, chips and industrial-strength cooling systems.
As you might have guessed, that kind of setup doesn’t come cheap.
In fact, Morgan Stanley estimates it will take around $1.5 trillion in debt by 2028 to fund these big AI goals.
Meta says it plans to spend up to $135 billion on AI infrastructure in 2026, almost double its spending from last year. Meanwhile, Microsoft recently spent $37 billion in a single quarter to build out its AI capabilities.
So...where is all this big money coming from?
Corporate bonds are loans to companies who are looking to raise funds for business growth, day-to-day operations or capital expenditure.
Put simply, tech companies raise money by selling corporate bonds to investors. Andin exchange for the loan, they agree to pay investors interest (known as “coupons”), and then they return investors' money at the end of the term (called “maturity”).
Unlike buying shares, when investors purchase a corporate bond they don’t have any ownership in the company. Instead, investors are provided with a stream of income that’s consistent and predictable.
In February 2026, Alphabet (Google’s parent company) issued a rare 100-year bond to raise $100 billion USD for its AI ambitions.
Historically, bonds with such long lifespans were mostly issued by governments and large financial institutions (like banks).
But even concerns about an AI bubble didn’t scare investors away. Demand for Alphabet’s bonds was strong, and other tech giants are tapping into debt markets too:
💰Meta issued about $30 billion USD in bonds specifically for building AI data centres and computing infrastructure
💰Oracle joined the race and raised $25 billion USD in bonds
💰Amazon raised $37 billion USD in a corporate bond sale, with aims of increasing this to $50 billion USD.
For everyday investors, there’s still a way to take part in the growth of AI. While it’s nearly impossible to get involved in the multi-billion-dollar corporate bond deals used by Big Tech, you can still get a seat at the table through fixed income ETFs.
These ETFs include a mix of corporate and government bonds, making it easier to gain exposure without needing deep pockets.
Franklin Templeton’s fixed income ETFs offer a simple way to access the global bond market that’s quietly powering the AI revolution.
Find out more about Franklin Templeton’s fixed income capabilities
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