The combined debt of the seven largest US technology companies has surged nearly 45% to $578 billion by mid-2026, driven by rapid investment in artificial intelligence infrastructure, according to SBI Research. This sharp increase raises concerns about potential financial vulnerabilities in the sector amid rising borrowing costs and Treasury yields.
- Magnificent Seven’s combined debt rose to $578B, up 45% from 2025.
- Higher bond yields could lower valuations by up to $2 trillion.
- Anthropic’s planned IPO seen as a key test for AI sector investment viability.
What happened
According to a report by SBI Research, the combined borrowing of the seven largest US technology companies, known as the Magnificent Seven, has increased almost 45% to $578 billion by mid-2026. This group includes Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. The debt, which stood at approximately $399 billion in 2025, is now nearly 1.7 times higher than it was in 2023.
The surge in debt reflects intense investment efforts to build out artificial intelligence infrastructure. In addition to on-balance-sheet borrowing, the companies have substantial off-balance-sheet commitments spanning purchases and investments. The report highlights that these financial moves are part of the companies’ strategic push to capitalize on AI’s rapid growth.
Why it matters
The rising debt load comes amid an environment of higher borrowing costs and increasing US Treasury yields, which could pressure the market valuations of these tech giants. SBI Research estimates that a further rise in yields might cause a valuation decline of $1.67 trillion to $2 trillion for the Magnificent Seven, whose combined market capitalization hovers around $23 trillion.
This scenario underscores the financial risks linked to aggressive AI infrastructure expansion, where the elevated cost of debt and existing off-balance-sheet obligations could impact investor confidence and earnings expectations. The broader market could also feel the effects, as the Federal Reserve experiences growing unrealized losses on its Treasury securities due to higher yields.
What to watch next
One key upcoming event is the expected public listing of AI startup Anthropic, tentatively slated for November 12, with a target valuation between $1.5 trillion and $2 trillion. SBI Research regards this IPO as a critical test for the sustainability and profitability of the AI boom, providing public investors with a benchmark to assess whether enterprise revenues can support the considerable infrastructure costs involved.
Investors and market watchers should also monitor shifts in Treasury yields and Federal Reserve policies, as these factors directly influence borrowing conditions and asset valuations in the tech sector. Continued quantitative tightening and bond market developments will be crucial in determining how long the debt-driven AI expansion remains financially manageable.