Big Tech's $200B AI Debt Binge Pushes US Bond Yields to Two-Decade Highs

Big Tech's artificial intelligence debt binge drives US bond yields to nearly two-decade highs. The largest artificial intelligence companies have issued over $200 billion in new bonds so far this year. These major technology firms historically self-funded their data center construction directly from operating cash flow. The unprecedented capital requirements for advanced systems have prompted the U.S. Treasury Department to try to put a lid on borrowing costs. Investors expect this supercharged spending to boost broader economic growth, pushing the Federal Reserve to keep interest rates elevated. "For most of the past decade, the large technology companies leading the A.I. build-out have funded their investment from operating cash flow. That era is ending." — Lucas Baynes The biggest companies on earth are suddenly too cash-poor to fund their own infrastructure arms race, and their massive debt appetite is now making borrowing more expensive for the rest of the economy.