Big Tech's AI fundraising has doubled, and credit spreads are widening

• Capital raised by AI-related companies surged from $172 billion in 2025 to $346 billion year-to-date in 2026, according to Barclays.
• Credit spreads have widened materially, and credit default swap spreads have risen sharply for hyperscalers, signaling increased risk.
• OpenAI is reportedly seeking to raise $30 billion (or more) as it needs significant capital for compute and data centers, despite not being profitable.
• Alphabet issued a 100-year bond, and Meta is raising billions, reflecting a broader trend of tech companies leveraging debt.

The discussion highlights a significant increase in capital raised by AI-related companies, including hyperscalers, data centers, and neo-clouds, through debt and equity. However, the analyst points out 'red flags' such as widening credit spreads and rising credit default swap spreads, indicating increased risk and cost of capital. Companies like OpenAI are raising substantial funds due to high operational costs and lack of profitability.