$2 Trillion Debt Surge Stresses US Bond Market

Amanda Lynam, Goldman Sachs' head of credit strategy research, says that hyperscalers like Amazon, Google, and Microsoft could collectively add around $2 trillion in debt while remaining investment grade. However, the U.S. bond market can only comfortably absorb about $510 billion of this debt before investors start to push back.

Lynam notes that the gap between these two numbers is not just a theoretical footnote but rather the defining tension in credit markets right now. This tension explains why even cash-rich companies are scrambling to diversify their borrowing.

The hyperscalers have already issued $194 billion of debt in the first seven months of 2026, putting them on track to issue around $250 billion for the full year. Across the broader AI ecosystem, Goldman's tracking puts AI-related debt issuance near $500 billion year-to-date.