New York, Aug. 6 -- Major technology companies financing artificial intelligence (AI) infrastructure still have significant room to raise debt despite recent volatility in AI-related bond markets, with J.P. Morgan estimating that hyperscalers could collectively issue around USD 1.7 trillion of additional high-grade debt before reaching levels that could attract greater investor concentration concerns.

The report said recent weakness in AI-related bonds reflects investors demanding higher pricing for new issuances rather than concerns that the market has reached its capacity to absorb additional debt.

"The current hyperscaler widening is a byproduct of the HG investor community trying to rationally price in an accelerating pace of issuan...