AI companies face higher borrowing costs as Treasury yields rise
Treasury yields climbed to their highest level since 2007, with the 10‑year yield near 5.17%, up about 1 percentage point since the start of the year. AI firms that rely on debt are expected to pay more for capital, as JPMorgan Chase estimated in June that $4.1 trillion of AI‑related debt will be issued through 2030.
Key points
- Treasury yields near 5.17%, up 1 percentage point since start of year, pushing AI debt costs higher.
- JPMorgan estimates $4.1 trillion AI‑related debt will be issued through 2030.
- CoreWeave warns each 100‑basis point rate hike could add $30M to interest expense.
Debt‑heavy neocloud CoreWeave saw its shares rise almost 8% this week, while Oracle fell 7% for the week and about 30% this year. SoftBank raised $11.1 billion in a junk‑bond sale, with yields as high as 9.75% for the 7‑year tranche. CoreWeave warned in its latest SEC filing that each 100‑basis‑point increase in rates could add $30 million to its interest expense.
CEOs of OpenAI and Anthropic urged a slowdown in AI development after concerns about advanced models. A recent poll found 69% of respondents oppose AI data‑center construction, and Texas Gov. Greg Abbott ordered a temporary halt to data‑center permits. Meta’s Muse app logged more than 2.5 million downloads in its first two weeks and could reach 100 million users within 6–12 months.
Debt-hungry AI companies face increased risk as bond yields spike
CNBC Technology · 27 September 2026
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