Meta will tap the European bond market for the first time this autumn to raise funds for its AI expansion, joining Silicon Valley's tech giants in a record-breaking hunt for cash that is reshaping global debt markets. "The quantum of debt that is hitting the marketplace is historic," says Greg Peters, co-chief investment officer at PGIM. The fundraising binge is changing how the world borrows money, affecting where, when and at what cost companies issue debt. Many companies are now being forced to time their bond issues around hyperscalers, often borrowing for shorter periods to avoid market glut.

Federal Reserve chair Kevin Warsh and US Treasury secretary Scott Bessent argue that hyperscalers compete for capital with the $31tn US Treasury market, where 10-year borrowing costs hit highest since 2007. Soft Bank recently raised over $11bn in the biggest junk bond issue ever to finance AI investments. According to Goldman Sachs, investors have provided about $500bn to AI-linked groups this year, with hyperscalers Amazon, Alphabet, Meta, Microsoft and Oracle accounting for $200bn and expected to issue over $1tn more in the coming years.