Alphabet Inc., Meta Platforms Inc. and Nvidia Corp. are facing wider credit spreads as investors demand higher yields for increasingly large debt offerings supporting artificial intelligence infrastructure. Financial analyst Nicholas Mugalli said Alphabet’s spread widened 15 basis points, from 56 to 71 basis points, as its issuance increased from $1.25 billion to $3.50 billion. Meta and Nvidia saw similar pricing pressure, with $4 billion offerings widening spreads by 15 to 19 basis points. Mugalli said investors no longer view big tech debt as risk-free paper and are demanding concessions to absorb the increased supply. Required funding has reached $5.5 trillion after a $400 billion increase in capital expenditure forecasts, while organic cash flow and incremental equity cover only about a quarter of that amount. Hyperscaler debt rose 92% year over year as capital expenditures increased 81%, but cloud and AI revenue growth reached 52% in the second quarter of 2026, with operating margins across AWS, Google Cloud and Microsoft Corp.’s Intelligent Cloud at 36% to 41%.