Wall Street is raining unprecedented cash on the hyperscalers
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Investors have already handed the AI hyperscalers more than twice as much money in 2026 as through all of last year.
Why it matters: The astonishing scale is raising concerns over an AI bubble bursting, as well as worries over whether these investments will actually pay off in the end.
By the numbers: Just five companies — Alphabet, Amazon, Meta, Microsoft and Oracle — have raised $255.34 billion through both equity (creating new shares of stock) and debt (issuing bonds), according to data from S&P Global Market Intelligence.
What to watch: The five companies have said that by year-end they'll have spent three-quarters of $1 trillion on AI data centers, per Barron's.
The intrigue: Four of the five hyperscalers are Big Tech companies that have long been profitable, throwing off lots of cash.
- And then there's Oracle. The nearly half-century-old software company has been on a borrowing binge to fund its AI ambitions, facing skepticism from Wall Street.
- The company reports earnings after the close on Wednesday.
The bottom line: There's a lot more money on the way.
- SpaceX, whose ambitions for AI data centers include orbital ones, is expected to raise at least $85 billion through its IPO.
- Two more AI giants are planning stock debuts this year.
