The hottest thing in artificial intelligence (AI) is not a chip or a chatbot. It is an IOU. Morgan Stanley expects AI companies to raise $570 billion from the bond market in 2026.

Nvidia and Kimi K3, Moonshot AI’s new Chinese model, own the headlines. Yet pension funds and insurers quietly pay for it all.

Morgan Stanley Turns the AI Bond Market Into a Fee Machine

The money is moving at record speed. Up to $236 billion of AI debt had been sold by May 31, four times last year’s pace, Forbes reported.

Morgan Stanley saw it coming. It led $65 billion in AI bond deals in late 2025 alone, according to Bloomberg.

The reward was $2.3 billion in fees in six months, LSEG data shows, up from $1.4 billion. That leap carried it past Goldman Sachs, behind only JPMorgan Chase.

The trick? Package Big Tech’s credit and long-term computing contracts into bonds that cautious investors will buy.

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Google’s Safety Net and Meta’s Hidden Debt

TeraWulf proves the model. The former Bitcoin miner now builds AI data centers instead. Its $3.2 billion bond sale drew $10 billion of orders at a 7.75% yield.

Why the rush for a junk-rated miner? Google. An SEC filing shows that Google is backing $3.2 billion in leases owed by tenant Fluidstack at TeraWulf’s New York campus. If Fluidstack stops paying, Google pays. In return, Google got the right to buy roughly 14% of TeraWulf.

Cipher Mining won a similar deal, which fueled a rally in miner stocks that outperformed BTC.

Meta plays the same game bigger. Morgan Stanley arranged $27 billion for its Hyperion campus in Louisiana, the largest private credit deal ever. Partner Blue Owl owns 80%, so the debt stays off Meta’s books.

Bond Investors Start Charging for Patience

Buyers are cooling. In February, they bought nearly five times as many Big Tech bonds as were on offer. By July, under two. And in late 2025, insuring Oracle’s debt cost more than at any time since 2009. The nerves align with broader AI bubble warnings.

The spending will not slow, however. Data centers need $2.9 trillion through 2028, and Big Tech’s cash covers only half of that, Morgan Stanley estimates.

Bonds built the railroads and the 1990s telecom boom. Now they are building AI. Every chip and every chatbot runs on borrowed money eventually. Whoever prices that debt decides how fast the future arrives.

Source: BeInCrypto