Tech Giants Borrow Heavily for AI Race Shaking Global Markets

The world’s largest tech companies are rapidly increasing their borrowing to keep pace with the AI race, a shift that is shaking up global financial markets. In the nine months since January 2026, tech sector borrowing has surged to around $500 billion, with giants like Google, Meta, Amazon, and Microsoft raising debt to fund AI infrastructure. Goldman Sachs predicts this borrowing could hit $1.2 trillion in 2027. Chris Della Fave, senior vice president at Post Oak Group, notes that AI now accounts for 25 percent of all corporate bond issuance, up from just 4 percent two years ago.

Investors are still eager to lend to these tech companies, but they are demanding higher returns than ever before. Meta has had to offer over 7 percent annually, while riskier cloud data center firms are going above 9 percent. This borrowing spree is even affecting demand for US Treasury bonds, pushing up borrowing costs for the government. The 10-year US government bond yield has hit 5.30 percent, its highest level since 2002, driven by inflation, geopolitical tensions, and the AI debt boom.

Some analysts warn of potential risks, including a possible slowdown in AI development or weaker revenue growth, which could trigger market shocks. In late September, the Bank of England’s Financial Policy Committee warned of a sharper correction. Oracle, with $125 billion in debt and shrinking cash reserves, is seen as a potential bellwether for the sector. Mark Malek, chief investment officer at Siebert Financial, cautions that trouble with Oracle’s debt could spread across the entire AI finance landscape.