US market maker Citadel Securities said more than US$500 billion of debt could be raised in public and private markets by 2028 to fund chips used in AI data centers.

Much of that borrowing would likely have three- to five-year maturities, with some issued through Rule 144A private offerings.

Those offerings let issuers sell privately to qualified institutional buyers instead of through public offerings registered with the Securities and Exchange Commission.

The forecast comes as AI-related debt issuance has already surged.

The report said global markets have absorbed about US$570 billion of AI-related debt, much of it from large cloud companies such as Amazon, Microsoft, and Alphabet’s Google.

The report also cited Anthropic’s roughly US$35 billion financing package to access Google tensor processing unit (TPU) chips.

It said Google and Broadcom backstopped payment obligations, allowing parts of the debt to be traded by Wall Street banks.

🔗 Source: Bloomberg