Big Tech’s AI Borrowing Binge Is Driving Up Bond Yields

The New York Times reports that a borrowing binge by the world's biggest technology companies to fund artificial intelligence growth is driving up U.S. government bond yields, which hit nearly two-decade highs this week and prompted the Treasury Department to try to curb borrowing costs. The resilience of the economy despite Covid-19, wars, tariffs, inflation, and high interest rates has been attributed to AI growth, but that growth now poses a risk.

“Economists have been repeatedly dumbfounded by the resilience of the economy in the face of the Covid-19 pandemic, wars, tariffs, inflation and sharply higher interest rates. A simple answer has provided a catchall explanation: the growth of artificial intelligence,” the New York Times https://www.nytimes.com/2026/08/20/business/bond-yields-tech-ai-debt.html reports. “But the growth of A.I. also poses a risk, reflected in the nearly two-decade highs that yields on U.S. government bonds hit this week, prompting the Treasury Department to try to put a lid on borrowing costs.” “That risk stems from a borrowing binge by some of the biggest technology companies in the world.” Save to Favorites ?wpfpaction=add&postid=2009492