What happened
Alphabet launched its second euro bond sale this year, as Morgan Stanley put AI-related borrowing at almost $500 billion through September, up from $100 billion in the same period last year.
Why it matters
The surge comes despite rising interest rates, with SpaceX paying as much as 8.75% on parts of its latest loan, a sign investors may be nearing the limits of how much AI debt they can absorb.
WHO IT HITSCompanies tapping debt markets to fund AI buildouts, from large cloud providers to capital-intensive firms like SpaceX, face higher borrowing costs as investors grow more selective.
Summaries like this, every morning.
Alphabet's return to the euro bond market comes as investors show early signs of strain in absorbing AI-related debt. Morgan Stanley's figures show AI-related borrowing at almost $500 billion through September, a sharp increase from $100 billion a year earlier. That jump occurred even as interest rates rose, including for the largest firms; SpaceX is paying as much as 8.75% on parts of its latest loan. One expert quoted described the boom as potentially the most transformative tech wave yet, but not big enough to defy the high price of money. Against that backdrop, Alphabet's second euro bond sale this year serves as a test of whether demand holds up.
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