Big Tech AI Race Triggers Borrowing Boom — SkimNews
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- Big Tech's AI race has fueled a borrowing boom as hyperscalers finance massive data-center and chip buildouts (Bloomberg)
- Apollo's Torsten Slok warns the AI capital surge is triggering 'Dutch Disease' in the US economy, hollowing out tradable sectors as the dollar and investment flow toward AI (Apollo)
- Financial Times highlights the 'huge lurking leverage' of AI hyperscalers — debt buildup that is not yet fully visible in market pricing (FT)
- Bloomberg flags that the AI debt binge risks crowding out emerging-market nations from global debt markets as hyperscaler issuance absorbs investor capacity (Bloomberg)
Why it matters: Hyperscaler AI capex is now driving debt issuance at a scale that threatens to absorb global capital normally allocated to emerging-market sovereigns, raising borrowing costs for developing economies while simultaneously distorting the US economy through Dutch Disease dynamics that weaken manufacturing competitiveness — a dual hit to both EM financing and US industrial diversity.
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