AI-Linked Debt Surges to $1.2 Trillion, Surpassing Banks in Investment-Grade Market

The total amount of high-grade debt tied to artificial intelligence (AI) has soared to $1.2 trillion, making it the largest segment in the investment-grade credit market, according to JPMorgan Chase & Co.

JPMorgan analysts Nathaniel Rosenbaum and Erica Spear wrote in a note on Monday that AI companies now account for 14% of the U.S. high-grade bond market, up from 11.5% in 2020. This surge means AI-related debt has now surpassed U.S. banks, which currently hold an 11.7% share of the JPMorgan U.S. Liquid Index (JULI).

The report attributes the growth to massive investor confidence, corporate expansion in AI infrastructure, and the rapid adoption of AI technologies across multiple industries. Analysts noted that “AI is no longer just a technology story — it’s becoming a financial powerhouse reshaping the structure of global credit markets.”

Large technology and semiconductor companies are increasingly issuing AI-linked bonds to fund research, data centers, and cloud computing expansion, further driving the rise in investment-grade debt tied to artificial intelligence.

Experts say this trend underscores a fundamental shift in global finance, where AI-driven enterprises now command greater capital access and investor appeal than traditional banking institutions.