Warsh says AI’s hyperscalers are part of why your borrowing costs are rising: ‘The competition for capital is real’
Hyperscalers issued $121 billion in bonds last year and are on pace for far more in 2026. Warsh says that's showing up in Treasury yields.
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# AI Hyperscalers' Capital Competition Pushing Up Borrowing Costs According to former Federal Reserve official Kevin Warsh, AI hyperscalers' massive bond issuance of $121 billion in 2025 is intensifying competition for capital and contributing to rising Treasury yields, suggesting their funding needs are directly pressuring borrowing costs across the broader economy. With hyperscalers on pace to issue significantly more debt in 2026, this trend could further elevate interest rates for consumers and businesses seeking loans.
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