AI Industry's $10 Trillion Financing Spree Raises Systemic Risks as Borrowing Costs Surge
The AI infrastructure buildout is consuming 3.6% of US GDP annually through 2032—more than railroads, highways, or the internet. AI hyperscalers like Meta, Amazon, and Microsoft are issuing over $1 trillion in debt, creating complex financing structures that experts compare to the subprime mortgage crisis. Rising bond yields and uncertain returns are raising alarms about financial instability.