Corporate borrowing in the United States has reached a new annual record, with major technology companies accounting for a substantial portion of the fundraising activity.

According to financial market data reported by Reuters, investment-grade corporate bond issuance reached approximately $1.88 trillion by November 4, surpassing the previous annual record of $1.86 trillion established in 2020.

Major technology companies, including Amazon, Alphabet, Meta, Microsoft and Oracle, have been borrowing heavily to finance their expanding artificial intelligence infrastructure.

Together, these companies have raised more than $370 billion through corporate bonds this year.

The growing demand for artificial intelligence services has encouraged technology companies to invest billions of dollars in data centres, specialised computer chips and networking equipment.

These investments require substantial capital, prompting businesses to explore different financing options rather than relying entirely on their existing cash reserves.

Although investors have continued purchasing many of these bonds, concerns are increasing about the financial risks associated with rising corporate debt.

Higher borrowing costs and uncertainty about the profitability of AI investments could make it more difficult for some companies to meet their financial obligations.

The record-breaking borrowing activity demonstrates how artificial intelligence is reshaping corporate finance.

While technology companies believe their investments will generate significant future revenue, investors will increasingly demand evidence that the spending can produce sustainable returns.