Big Tech’s Borrowing Spree Raises Fears of AI Risks in US Bond Market
The US bond market is experiencing a surge in borrowing by Big Tech companies, driven by their investments in artificial intelligence (AI). This has led to concerns about the potential risks to the broader economy. In 2025, hyperscalers such as Amazon, Alphabet/Google, Meta, Microsoft, and Oracle issued approximately $121 billion in new debt, with over $90 billion raised in the last three months alone.
The potential risks to the broader economy include:
- Massive leverage-induced stress on the corporate bond market
- Widening credit spreads and higher default-risk premiums
- Liquidity strain in a risk-off episode
- Contagion to other sectors and the real economy
- Amplified systemic risk through circular exposure
- Fiscal-policy implications
- Potential impact on consumer credit and housing
These risks could have significant implications for the US economy, including a potential drag on GDP growth and increased volatility in credit markets.
Sources
- Record-Breaking AI-Related Debt Issuance in 2025 – BNY Mellon
- Big Tech is taking on more debt than ever to fund its AI aspirations – Washington Post
- Tech Giants and the Debt-Fueled AI Boom: Navigating Credit Market Risks – AINVEST
- Tech Giants Flood Bond Markets for AI Cloud Expansion Plans – Cognativ