Goldman Credit Desk Sees "Eye Of Hurricane" In AI Debt Issuance... Then All Hell Breaks Loose

What a year it has been for credit issuance: with hyperscaler capex expected to near $1 trillion this year (and blow above it in 2027), and with most hyperscalers now free cash flow negative as all of their FCF goes to build data centers and fund memory makers (at a time when an onslaught of Chinese open-weight models guarantees that the ROIC for the AI trade will never meet investor bogeys), there has been an absolute deluge of debt issuance to fund AI obligations, both on and off balance sheet (for our most detailed analysis on the topic please see "The Off-Balance Sheet Time Bomb Inside AI Hits $3.1 Trillion: Up $1.3TN In Three Months").

For those who don't want to, or have the time, to read all the painful details but still want a general answer to the question just how much debt are hyperscalers issuing, we point you to the latest Eye on the Market report (available to pro subscribers) by JPMorgan's Michael Cembalest who made the following stunning observations (which echoes what we said about hyperscaler debt now competing with demand for US Treasuries!):