The AI sector's immense debt appetite, fueled by massive capital expenditure plans from tech giants like Amazon, has led to a significant increase in bond issuance. S&P Global reports that hyperscalers and related entities have issued $225 billion in bonds so far in 2026, a 973.7% surge, putting them on pace for a record year. However, market fatigue is setting in, with investors demanding higher premiums.

Adding to the concern is the explosion of "hidden debt" at U.S. tech giants, which has reportedly ballooned to $1.65 trillion. This debt, stemming from long-term purchase agreements and leases, is not always visible on balance sheets but represents significant future financial obligations. Moody's also flagged substantial off-balance-sheet deals, particularly for data centers.

While major hyperscalers maintain robust balance sheets and investment-grade ratings, their shift towards asset-heavy models necessitates unprecedented investment and capital raising. The combination of visible and hidden debt, alongside government borrowing needs, suggests a potential strain on capital markets as the AI boom continues.