Among the many potential downsides for letting the national debt get too high was that the federal government would suck up so much capital that businesses wouldn’t be left with enough.
Today, U.S. debt is at $40 trillion, the federal budget deficit is on track to reach $2 trillion this fiscal year, and debt servicing costs alone are $1 trillion a year.
That’s a lot money that the Treasury Department has to raise from the bond market, which is also a key source of financing for corporate giants.
But AI hyperscalers, so far, are still able to issue plenty of their own debt in the mad dash to buy chips, build data centers and lay down other infrastructure.
In fact, even Treasury Secretary Scott Bessent, who has billed himself as America’s top bond salesman, has noted the eagerness with which AI companies are offering debt—no matter the cost of borrowing.
