US tech giants' hidden AI debt swells to $3.2T
The gist
Nikkei Asia reports US tech giants' off-balance-sheet AI debt almost doubled in six months to about $3.2 trillion.
Investors are questioning whether AI cash flow can cover the borrowing boom.
How it unfolded
- 2026 Q2AI-related investment-grade bond issuance reached $330 billion for the year, 10 times the full-year 2023 level; combined debt of the Magnificent Seven rose nearly 45% to about $578 billion by mid-2026.
- 2026 Q3Alphabet reported negative free cash flow of $9.1 billion, its second straight quarter in the red, as quarterly capex grew to $51.4 billion.
- Oct 30, 2026Nasdaq fell 2.9%; Nvidia dropped 4%, Broadcom more than 5% and Qualcomm 11%, while Alphabet fell again after a record 12% plunge that wiped out $500 billion in market value.