UBS has significantly upgraded its 2026 forecast for US investment-grade technology bond issuance, raising the target to $360 billion from a previous $300 billion. This revision reflects a massive surge in capital expenditure by industry "hyperscalers" as they race to expand artificial intelligence infrastructure and data center capacity. The primary drivers of this borrowing binge are megacap firms including Meta, Amazon, and Alphabet. These companies have recently signaled a collective capital expenditure package approaching $770 billion for 2026—a 23% increase over earlier estimates. Amazon alone has projected a monumental $200 billion spend, while Alphabet recently demonstrated the sector's global reach by tapping international markets for $31.51 billion in sterling and Swiss franc-denominated deals. Technology debt is now expected to account for roughly one-fifth of the total $1.8 trillion US investment-grade market for the year. This shift toward debt financing became more pronounced in late 2025 as firms moved away from purely cash-funded expansion to leverage the liquid public bond markets for large-scale AI projects. In contrast to the optimism in high-grade debt, UBS has trimmed its outlook for US leveraged loans, cutting the forecast to $360 billion from $450 billion. This adjustment stems from concerns that AI-driven disruption is currently underpriced in riskier credit segments. Analysts warn that advanced AI models could threaten traditional business models, potentially leading to wider spreads and higher refinancing costs for leveraged borrowers. This creates a growing divergence in the credit markets: while investment-grade tech issuance hits record highs, the leveraged loan and private credit spaces face increased scrutiny and potential volatility as investors reassess long-term returns on AI spending.