The issuance of convertible bonds in the United States hits a record high as AI-related financing demand surges

As companies seek funding to support massive AI-related expenditures, the total amount of U.S. convertible bond issuances has reached a historic annual high. Data shows that companies listed in the U.S. have raised $131 billion through issuing bonds that can be converted into stocks under certain conditions; among this, the $25 billion raised in August pushed the annual total beyond the previous record set two years ago. This issuance boom has attracted participation from emerging AI cloud computing firms such as Nebius Group NV, and investment-grade companies are also joining in. Notably, Alphabet issued the largest convertible bond of the year as part of its $85 billion financing plan. Craig McCracken of Wells Fargo stated, “The current issuance scale far exceeds historical levels because the financing needs brought on by AI and related infrastructure construction have significantly increased, and more investment-grade issuers have become active again.” Goldman Sachs strategist Spencer Rogers noted that about 44% of this year’s convertible bond issuances have come from AI-related companies.