Big Tech’s AI spending spree is now spilling into the bond market.
Alphabet, Amazon, Meta, Microsoft and Oracle have borrowed a combined $220 BILLION this year to finance AI data centers and models — more than double last year’s level, according to Reuters.
The surge in borrowing is adding pressure to U.S. bond yields, which have climbed to their highest levels since 2002.
Higher yields mean higher borrowing costs across the economy, from mortgages and auto loans to student debt.
The Institute of International Finance says major economies now spend more on interest payments than the entire world invests in AI.
Alphabet, Amazon, Meta, Microsoft and Oracle have borrowed a combined $220 BILLION this year to finance AI data centers and models — more than double last year’s level, according to Reuters.
The surge in borrowing is adding pressure to U.S. bond yields, which have climbed to their highest levels since 2002.
Higher yields mean higher borrowing costs across the economy, from mortgages and auto loans to student debt.
The Institute of International Finance says major economies now spend more on interest payments than the entire world invests in AI.
