Artificial intelligence-linked companies drove US convertible bond issuance to a record high last year, with the trend expected to continue in 2025. The surge in AI-related financing reflects growing investor appetite for companies positioned to benefit from the technology boom.

Convertible bonds, which can be converted into equity, have become a popular funding tool for AI startups and established tech firms alike. This financing method allows companies to raise capital while offering investors potential upside through equity conversion. The record volume suggests AI companies are aggressively pursuing growth opportunities and investors are eager to participate in the sector's expansion.

The strong performance of AI-linked convertibles comes amid broader enthusiasm for artificial intelligence technologies. Companies across industries are racing to integrate AI capabilities, driving demand for specialized hardware, software, and services. This financing boom underscores how AI has evolved from a niche technology to a mainstream investment theme, attracting significant capital from institutional investors seeking exposure to the sector's growth potential.