December 2, 2025

Bankers at the Reuters NEXT conference estimate that big‑tech companies may need $100 billion in new financing next year to fund AI investments and mergers. Hyperscalers have already issued almost $90 billion in bonds since September, and there’s a $175 billion backlog of deals waiting to close. This flood of capital signals consolidation and intense competition in the AI sector, an environment where entrepreneurs must choose between partnering with giants or standing independent.

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The AI boom isn’t cheap. At a recent panel during the Reuters NEXT conference, executives from Barclays and Morgan Stanley predicted that large technology companies will seek up to $100 billion in financing in 2026 to fuel AI projects and acquisitions. Companies like Amazon, Microsoft and Google are spending aggressively on data centers, chips and software infrastructure. According to Reuters, hyperscalers have already raised $88.5 billion in the bond market since September.

The panelists also noted that there is a backlog of $175 billion in pending M&A transactions, much of it involving AI companies. This includes deals for startups developing chips, training data platforms and specialized AI models. Bankers expect more mega‑deals as the largest firms seek to lock up resources and talent. Importantly, investors appear comfortable with the high capital requirements, viewing data centers and compute hardware as reliable collateral.

For entrepreneurs, the takeaway is twofold. First, competition for AI assets is fierce. If your company offers a unique technology or dataset, expect to field offers from corporate giants and private equity firms. Prepare clear valuation benchmarks and decide whether an acquisition aligns with your mission. Second, even if you aren’t seeking a buyout, you may need to raise capital to compete. Build relationships with lenders and investors who understand the AI landscape and be ready to justify high upfront costs with long‑term recurring revenue models.

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