In order to prepare for a trillion-dollar investment in artificial intelligence (AI) infrastructure, especially data centers, super-scale technology giants (hyperscarler) of the US are running to release business bonds on international capital markets.
At the beginning of the year, Alphabet repeatedly broke the releases record on many markets, when bonds transactions in Japanese yen, Canadian dollar, Swiss Octophone, and the English table all set an unprecedented boost to these coins. Singles as the release of 576,5 billion Japanese yen May 15th.
Alphabet is also one of the largest loaners on the British-based bond market (3.5 billion pounds) and 550 Swiss (3.1 billion/50). In addition, the company released a amount of 9 billion euros and $8.5 billion Canadian bonds.
*Logo application AI Google Gemini on the phone, March 3,025. Image: *Tress Treasure
In the meantime, Amazon has mobilized 1720 billion euro (16,88 billion) in March through the release of 8 bonds, becoming the largest ever-ever release on the business bond market by euro, according to LSEG data.
In Europe, Amazon and Alphabet contributed to pushing the overall value of the release of American non-final enterprises to over 60 billion euro (69.85 billion) from the beginning of the year to today, the new record high.
"If you look at the current speed and imagine the next 12 months, some companies will become the largest bond-makers in the world at any currency", Giulio Baratta, Co-PDF at BNP Parribas, remarked.
Bank of America stated that the weight of the release of the bond was not in terms of the dollar of the hyperscarer has doubled this year, up to 30% of the total capital campaign over the bonds. According to experts, this is part of the diversity of capital strategies, helping technology corporations to prevent risk risks, and at the same time taking advantage of lower loans at markets such as Europe.
Morgan Stanley predicted the total euro bond value released by this year's "hyperscarler" can achieve about 50 billion euros, helping the US out of France as the largest business bond release of eurozone.
"A lot of markets, including euro, have grown significantly and currently provided depth as well as a much larger capital campaign opportunity than before", said John Servidea, Co-General Global Financial Investment at JPMorgan.
In addition, according to Servidea, capital mobilization abroad also helps corporations to extend the time between the return to the American bond market. Large weight of debt often put pressure on the bonds price of the business released. Less appearances on the US market can help limit this impact.
Mr. Baratta at BNP Paribas, the unit involved in leading the Abet and Amazon transactions, stating that much of the campaign capital is still being retained by companies in the coin released, instead of switching back to the dollar.
On the side of the investor, they also want to increase their exposure to the AI theme through the international bond market, where technology businesses were previously quite limited. For example, Nicolas Forest, the investment director of Candriam, is buying euro bonds released by the hyperscarer, to increase the proportion of investment in AI.