AI Boom Fuels Billions in New Debt from Nvidia, Oracle, and SpaceX—Prudent Strategy or Red Flag?

Wall Street’s appetite for funding the AI buildout is surging, with Nvidia selling $25 billion of bonds amid $85 billion in orders, Oracle signaling plans to raise up to $50 billion this year, Amazon borrowing more than $80 billion since 2025, and SpaceX preparing a bond sale of at least $20 billion following its IPO. Alphabet has taken a different tack, raising roughly $85 billion via equity and preferred stock. Despite talk of excess, the largest borrowers appear well-positioned: Nvidia earned nearly $43 billion in net income last quarter and posted 65% full-year revenue growth to about $216 billion, while cloud profits at Amazon and Alphabet comfortably service interest. For now, companies are using lower-cost capital to accelerate AI infrastructure investment rather than to bridge cash shortfalls, suggesting leverage remains a strategic tool rather than a warning signal.

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