🔴US hyperscalers are borrowing at an UNPRECEDENTED pace to fund the AI buildout: Amazon, Alphabet, Meta, and Oracle have issued ~$194 BILLION of bonds so far in 2026 through July 27, surpassing the ~$108 billion issued in all of 2025. That 2025 total was itself up +535%, or ~$91 billion, from just ~$17 billion issued in 2024. The binge will likely continue as Goldman Sachs expects the 5 hyperscalers, including Microsoft, to issue ~$250 billion in bonds this year, rising further to ~$400 billion in 2027. This is all unfolding as investor demand is already cooling, with the cover ratio on hyperscaler bond sales, which measures investor orders relative to the amount of bonds sold, falling to below 2 times in July, from nearly 5 times in February. As a result, hyperscalers are now paying the highest borrowing costs in years, with median spreads on 20-year-plus bonds widening to ~118 basis points over risk-free rates from ~108 basis points in 2025. The cost of funding the AI boom is rising, and investors want proof the spending will pay off.