Borrowing to fund AI data centers is exploding: Investment-grade bond issuance from AI Big Tech firms jumped to a record 88 billion. This comes as Meta, META, and Oracle, ORCL, issued 30 billion and 18 billion in debt in September and October, respectively. This was followed by 27 billion in financing through a Special Purpose Vehicle (SPV) formed by Meta and Blue Owl Capital to fund Meta’s Louisiana data center project. Including a 38 billion project-finance loan tied to Oracle’s new AI data centers in Texas and Wisconsin, total borrowing now stands at 126 billion. This represents a +500% increase over the full year 2024. This is also QUADRUPLE the sector's average annual issuance of 32 billion between 2015 and 2024. AI debt is on the rise.(The Kobeissi Letter)