Federal Reserve urged to exercise caution as AI debt piles up

Big Tech wants to build the future of artificial intelligence. Increasingly, it wants to do that with borrowed money. A Bloomberg opinion piece argues that the corporate bond market already recognizes the risks of AI’s enormous capital spending. It also argues that the Federal Reserve should tread carefully so a market wobble does not turn into a self-reinforcing downward spiral. The borrowing binge, by the numbers In 2025, five hyperscalers (Google, Amazon, Meta, Microsoft and Oracle) issued approximately $108 billion to $121 billion in corporate bonds tied to AI-related investment, according to the research findings. Their annual average in prior years sat somewhere between $20 billion and $28 billion. The IMF’s October 2026 report indicated that hyperscalers now account for 10% of global investment-grade bond issuance. Just two years earlier, that figure was less than 1%. AI-linked investment-grade bonds from these companies carry weighted-average maturities of 16 to 17 years. The broader market average is approximately 10 years. Why bond investors are getting picky According to the research findings, investors are demanding higher yields on this debt because of uncertainty abou...