Morgan Stanley is leading a massive transformation in the bond market as AI companies are expected to raise $570 billion from the bond market in 2026. According to reports from Forbes, up to $236 billion of AI debt had been sold by May 31, representing four times last year's pace. The investment bank positioned itself strategically, leading $65 billion in AI bond deals in late 2025 alone, as reported by Bloomberg. This aggressive positioning has yielded significant returns, with Morgan Stanley earning $2.3 billion in fees in six months, up from $1.4 billion, according to LSEG data, which carried it past Goldman Sachs and behind only JPMorgan Chase.
The AI bond market has attracted some of the biggest names in technology and finance. TeraWulf, the former Bitcoin miner now building AI data centers, successfully completed a $3.2 billion bond sale that drew $10 billion of orders at a 7.75% yield. As reported by Forbes, an SEC filing reveals that Google is backing $3.2 billion in leases owed by tenant Fluidstack at TeraWulf's New York campus, with Google getting the right to buy roughly 14% of TeraWulf in return. Similarly, Meta secured $27 billion for its Hyperion campus in Louisiana, the largest private credit deal ever, with partner Blue Owl owning 80% of the debt to keep it off Meta's books.
The AI bond market is experiencing a significant shift in investor sentiment. According to Forbes reports, buyers purchased nearly five times as many Big Tech bonds as were on offer in February, but by July, this ratio dropped to under two. The market volatility is reflected in insurance costs, with insuring Oracle's debt costing more than at any time since 2009 in late 2025. Despite cooling investor appetite, the spending momentum continues, as Morgan Stanley estimates that data centers need $2.9 trillion through 2028, with Big Tech's cash covering only half of that requirement.
