Strong demand for AI compute is driving massive capex expansion by all six major hyperscalers. Alphabet, Amazon, Microsoft, Meta, Oracle,&SpaceX will spend in excess of $1.3 trillion in 2027, versus $870 billion in 2026. Hyperscalers indicate strong demand backed by their own internal workloads and multiyear contracts. They are pursuing different ways to monetize (e.g. incorporate AI into first-party products, host AI-models and charge per token, or lease compute capacity to AI labs). And they are significantly increasing corporate debt issuance, and pursuing equity offerings and other novel forms of off- balance sheet financing.
