$194 Billion AI Corporate Bonds: Variables for Interest Rates and Gold Prices

The issuance of corporate bonds by big tech companies to fund AI infrastructure investments has become a significant variable affecting both long-term government bond yields and gold prices. As investments in data centers, semiconductors, and power grids increase, the supply burden of corporate bonds is raising compensation demands in the bond market.

According to Reuters, an analysis of LSEG data revealed that Amazon ($AMZN), Alphabet, Meta, and Oracle have issued approximately $194 billion (about 274.51 trillion KRW) in bonds by July 7, 2026. This marks a 79% increase from the total issuance of about $108 billion (approximately 152.82 trillion KRW) in 2025.

Goldman Sachs predicts that the bond issuance by five major hyperscalers, including Microsoft ($MSFT), could reach about $250 billion (approximately 353.75 trillion KRW) in 2026 and about $400 billion (approximately 566 trillion KRW) in 2027. Hyperscalers refer to big tech companies that operate large-scale cloud and data center infrastructures.

The focus is shifting from the expansion of borrowing by big tech and corporate bond spreads to whether this burden will spill over into the long-term government bond and gold markets. The trend of AI infrastructure investments is accompanied by large-scale financing, intertwining bond supply and asset price assessments.

Among the 91 hyperscaler bonds issued in 2026 that Reuters compared, 78 were trading at higher yields than at the time of issuance as of July 28. The median yield increase was about 22 basis points. The rise in bond yields indicates a drop in prices, meaning investors are demanding higher compensation for bonds from the same companies.

The demand for funding for AI infrastructure is shifting from a single company's capital investment issue to a supply burden for the entire long-term capital market. Building data centers requires not only servers and semiconductors but also power purchase agreements, transmission networks, and cooling facilities. As the scale of investments becomes difficult to manage solely through cash flow, reliance on corporate bonds and other borrowings also increases.

However, it is necessary to distinguish the figures surrounding AI-related bond issuance. CryptoBriefing reported on the 17th that AI-related bond issuance has reached nearly $1.5 trillion this year, but figures corroborated by public reports are smaller than this.

Morgan Stanley projected in a Reuters report that global AI-related bond issuance in 2026 would be about $570 billion (approximately 806.55 trillion KRW), with about $236 billion (approximately 333.94 trillion KRW) already issued by May 31. Bloomberg cited analysis from JP Morgan Chase, indicating that about $1.5 trillion (approximately 2122.5 trillion KRW) will be needed for investment-grade bonds over the next five years.

The government bond market is also reflecting the same burden in prices. By mid-August 2026, the yield on the U.S. 10-year Treasury bond was fluctuating in the high 4.6% range, while the 30-year bond was around 5.2%. When long-term interest rates rise, it changes not only corporate borrowing costs but also the discount rates for stocks and commodities.

The reaction in the gold market has not been straightforward. The Wall Street Journal reported on the 17th that New York gold futures rose by 0.5% to $4,458.20 per troy ounce, while spot gold also increased by 0.6%. This was interpreted as a result of weak U.S. retail sales and consumer sentiment indicators putting pressure on the dollar and lowering expectations for interest rate hikes.

Gold is a non-yielding asset, so typically, as interest rates rise, its relative attractiveness decreases. Conversely, if the dollar weakens or demand for safe-haven assets increases, it provides support for gold prices. Therefore, it is difficult to conclude that the issuance of AI corporate bonds has directly pressured gold prices.

Market interpretations are also divided. Some view the expansion of corporate bond supply and rising long-term interest rates as a burden on gold prices, while others argue that increased debt and fiscal instability could actually boost demand for gold as a safe-haven asset. Even with the same interest rate increase, the response of assets can vary depending on whether the cause is an expansion of growth investments or concerns about inflation and fiscal stability.

For domestic investors, this trend leads to a consideration of U.S. tech stocks, interest rates, and gold prices together. AI infrastructure investments serve as a basis for big tech performance and semiconductor demand, but if this funding pushes long-term interest rates higher, it could burden the valuations of growth stocks. For investors holding gold, dollars, and U.S. long-term bonds, the variables for asset allocation decisions have increased.

In particular, the issuance of AI corporate bonds also indirectly affects the crypto market. If long-term government bond yields rise, the relative attractiveness and liquidity environment of risk assets like Bitcoin (BTC) could also be shaken. This means that the connection between AI infrastructure investment and long-term interest rates could influence liquidity assessments in the crypto market.

The confirmed fact is that with the expansion of AI borrowing by big tech, the compensation demands in the corporate bond market have increased, and the trajectory of those interest rates is being mentioned as a variable in the gold market assessment. The $1.5 trillion figure should be viewed as the required scale of investment-grade bonds over the next five years, not this year's issuance. Gold prices are responding not only to AI bond issuance but also to the dollar, Federal Reserve interest rate expectations, and demand for safe-haven assets.