AI Debt Glut May Increase US Government Borrowing Costs, BondCliQ CEO Says

BondCliQ CEO Chris White said the artificial intelligence (AI) debt glut may be lifting US government borrowing costs, noting that many new hyperscaler bonds trade wider within six months of issuance. White expects lenders to demand higher yields from tech giants building AI data centers, citing concerns from bond investors over the long-term story of companies like CoreWeave and Oracle. CoreWeave accounts for about 5% of the $258 billion in AI-linked debt sold over the past year and must refinance within five to seven years, exposing it to higher short-term rates, unlike Oracle whose debt runs for decades. White believes this oversupply could lead lenders to demand higher yields from all borrowers, including Washington itself, with Microsoft's AAA credit rating setting the benchmark for peers.