AI is pulling in global cash, and the US government is feeling the squeeze

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The world’s money has a favorite destination right now, and it’s a short list of American tech companies building artificial intelligence. A Bloomberg Originals documentary released on October 8, 2026, argues it’s more complicated: the flood of capital into AI is creating problems for the US government, developing nations and the global economy at large. Where the money is going, and where it isn’t Since the AI investment surge took off after 2022, global capital has clustered around a handful of US firms, often grouped together as the “Magnificent 7.” According to the documentary, that surge is redirecting money away from three areas that used to compete for it: US sovereign debt, investment in developing nations and traditional industrial sectors. The documentary links this shift to the highest trade imbalances seen since the 2008 financial crisis. Cross-border holdings tied to the US have quadrupled since 2008 and now stand at around 80% of net creditor nations’ foreign holdings. Nomura’s warning about hidden risk A Nomura analysis dated September 30, 2026, adds a sharper edge to the picture. Nomura says the AI boom has driven a growing concentration in US dollar assets, and tha...

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