JPMorgan: AI Giants' ~$320B Debt This Year Absorbs 68% of New Long-Term U.S. Treasury Borrowing
JPMorgan's Michael Cembalest finds that six AI giants, including Oracle and Microsoft, have issued roughly $320 billion in debt so far in 2026. This figure is equivalent to about 68% of new long-duration U.S. Treasury borrowing this year, indicating these companies are competing with the Treasury for the same pool of long-duration bond demand. Goldman Sachs projects that hyperscalers will issue approximately $340 billion in 2027, potentially crowding the Treasury market further. Oracle is noted as an exception, with its capital expenditures projected to exceed operating cash flow, leading to negative free cash flow through 2029.
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