Hyperscaler off-balance sheet obligations hit $3 trillion as AI spending spree accelerates

Tech giants are borrowing hundreds of billions to fund AI, and bond markets are getting nervous

Hyperscalers (Google, Amazon, Meta, Microsoft, Oracle) issued $489 billion in AI debt through mid-2026; corporate bond issuance surged 500% to $120 billion in 2025 alone. Bond markets repricing AI capex risk—Oracle's credit spreads rose 44%—as negative free cash flow projections mount, squeezing margins and slowing infrastructure expansion.