AI investment is reshaping the bond market! Sunak: By 2027, the net issuance of long-term bonds by technology companies may surpass that of the US government

According to Jinse Finance APP, former UK Prime Minister Rishi Sunak stated that, driven by artificial intelligence (AI) investment, technology companies are expected to become larger net issuers of long-term debt than the US government by 2027. This assessment highlights that AI capital expenditures are profoundly changing the supply and demand structure of the global long-term financing market.

Capital markets are undergoing significant changes: private sector technology investments are absorbing a portion of long-term financing, which has traditionally been dominated by sovereign borrowers; at a time when European government finances are already stretched, this is putting upward pressure on yields.

Sunak said at an economic forum in New Delhi: “Technology companies’ demand for capital is so immense that, surprisingly, if you consider long-term debt—such as debt with maturities over ten years next year—I believe technology companies will become larger net issuers of debt than the US government.”

Sunak believes that AI-driven capital expansion is intertwined with another structural pressure: governments across Europe and other regions are struggling to maintain fiscal discipline, a trend he attributes to the rise of populist politics. He stated that these factors collectively exacerbate the fiscal challenges facing European governments.