AI hyperscalers near $500B in debt this year as borrowing spree pushes rates to 2002 highs
churchkey · x · 2026-10-06
An analyst argues the AI boom is already distorting credit markets, with the real bust yet to come.
- Amazon, Alphabet, Meta and Oracle sold $194B of bonds by early July, 79% more than all of 2025; Goldman puts AI-linked financing near $500B this year, with the five hyperscalers expected to issue over $1T in new debt
- When one borrower doesn't care whether money costs 4% or 8%, rates rise until they hurt someone else: the 10-year Treasury hit 5.33% (highest since 2002), 30-year mortgages are at 7.28%, and purchase applications run 14% below last year
- The author likens AI to the sole bidder who'll pay any price at an auction, winning every lot while the rest of the credit market pays
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