Record spending on AI infrastructure fuels capital raises by listed companies

The global race to build AI infrastructure has become so capital-intensive that companies are bypassing the sluggish IPO market entirely, choosing instead to raise massive sums through secondary offerings, convertible notes, and equity sales.

JPMorgan now projects global AI-related capital expenditures will hit $5.5 trillion by 2030, a figure the bank revised up from $5.1 trillion just months ago. Of that total, roughly $4.1 trillion is expected to be financed through debt.

Big Tech is writing checks that would make sovereign nations blush

The four largest tech spenders dropped a combined $130.65 billion on AI infrastructure in Q1 2026 alone. That’s a quarterly record, and it sets the pace for what analysts expect will be $600 billion to $700 billion in combined capital expenditure across Big Tech for the full year.

Alphabet is planning to raise $80 billion through equity issuance specifically for AI data center expansion. Part of that deal includes a $10 billion block sale to Berkshire Hathaway.

Oracle, meanwhile, is targeting approximately $40 billion through a mix of debt and equity raises in fiscal year 2027, all earmarked for AI projects.

Former Bitcoin miners are pivoting hard into AI

Several publicly listed companies that built their businesses around Bitcoin mining are now repositioning themselves as AI infrastructure providers. The capital raises in this segment have been substantial. IREN, formerly known as Iris Energy, completed a $3 billion convertible notes offering in May 2026, with proceeds directed toward expanding GPU capacity and building out Tier III data centers. HIVE Digital Technologies raised $115 million through a zero-interest convertible note in April 2026, targeting similar infrastructure upgrades.

Hut 8 has raised $4.25 billion, while TeraWulf secured $900 million, both pivoting significant portions of their operations toward AI cloud services.

What this means for investors

The shift from cash-flow-funded expansion to aggressive capital markets activity signals a new phase in the AI infrastructure cycle. Rising loan-to-cost ratios across the sector indicate that companies are taking on increasing leverage to finance buildouts.

The convertible note structures favored by former mining companies are particularly telling: they give investors equity upside if the pivot works while providing downside protection through the debt component.

JPMorgan’s $5.5 trillion projection assumes sustained demand growth for AI compute over the next four years. The scale of current commitments means the consequences of being wrong would be proportionally larger.

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