Treasury yields hit their highest since 2007. AI infrastructure borrowing costs are rising as a result. JPMorgan estimates $4.1 trillion in AI-related debt will be issued through 2030. SoftBank raised $11.1 billion in junk bonds at up to 9.75% yield this week. CoreWeave stock rose 8% while Oracle fell 7% this week. Oracle invoked force majeure on a New Mexico data center project. Texas halted new data center environmental permits. Meta’s Muse app reached 2.5 million downloads in two weeks. Investors warn neocloud financing will get harder. Lenders are growing pickier about AI projects.
What changed
AI infrastructure borrowing costs were lower when Treasury yields were below 4% earlier this year.
What it unlocks
Higher borrowing costs may slow future AI data center financings.
- $4.1 trillion AI-related debt through 2030
- 10-year Treasury yield near 5.17%
- SoftBank $11.1 billion junk-bond sale at 9.75% yield
- 2.5 million Muse downloads in two weeks
Sources