October 8, 2026, (Inside AI) — A quiet but significant shift is underway in global markets. The AI boom that began with cash is now increasingly powered by debt, and that debt is landing in the bond funds and pension pots of savers worldwide.
On Thursday, Asian shares slipped as sovereign bond markets faced fresh strains from a wave of corporate borrowing by major tech companies. Reports indicated that SpaceX, Broadcom, and Oracle are seeking to raise billions in debt to purchase AI chips, directly competing with governments for limited funding.
This surge in corporate debt comes as sovereign bond markets are already being tested by inflation fears, widening budget deficits, and rising cash rates. The result is a complex tug-of-war that could reshape the financial landscape for years to come.
The numbers are staggering. Broadcom is reportedly seeking $50 billion in financing, while SpaceX plans to issue $30 billion in investment-grade debt and raise $10 billion in loans to buy chips from Nvidia, which is a major shareholder in SpaceX. The news sent credit default insurance on SpaceX to record highs, while its shares and bonds lost ground.
Read: Nvidia, Broadcom Shielded as AI Power Crunch Hits Chip Supply Chain, Says Morgan Stanley
Nigel Green, CEO of deVere Group, warned of a dangerous loop where Nvidia is bankrolling the very customers who buy its products, leaving global investors at risk if expected profits fail to materialize.
"The AI build out started on cash," said Green. "It's increasingly running on credit, and credit changes the risk profile entirely."
"Debt has to be repaid on schedule, whether the revenues show up or not," he added. "And this debt is landing in the bond funds and pension pots of savers right around the world."
The steady climb in borrowing costs put equities on the defensive. Japan's Nikkei eased 0.9%, with South Korea down 0.6%. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1%. On Wall Street, S&P 500 futures and Nasdaq futures were barely changed.
While lofty yields underpinned the dollar, the euro slid to near 17-month lows as concerns over France's finances spread to Italian and Greek debt. The dollar index rose to 102.22, near an 18-month peak.
In commodity markets, Brent futures rose 0.9% to $101.14 a barrel, while US crude futures added 0.8% to $89.02 a barrel. Non-interest-bearing gold has suffered as yields climbed, leaving it at $4,105 an ounce and near two-month lows.
Minutes of the Federal Reserve's last meeting released on Wednesday showed "most" members considered another rate hike likely by year end, though they would approach each meeting with an open mind. Markets imply just a 19% chance the Fed will move again this month, but are 80% priced for a rise in December.
"We expect a second Fed hike in December, though we see a strong chance the Fed ultimately concludes further tightening is unnecessary," wrote analysts at Goldman Sachs in a note.
The prospect of a pause in tightening helped keep 2-year Treasury yields at 4.78%, while 10-year yields nudged up to 5.298% having hit a 24-year top of 5.326% overnight.
Strains in the French bond market led Bank of France head Emmanuel Moulin to acknowledge the country's economic situation was serious, but he reassured investors it did not need help from the European Central Bank. Investors reacted by dumping the euro, which was pinned at $1.1198 having lost 0.6% overnight.
Still, the fact much of this money will be spent on AI equipment could be positive for earnings in the semiconductor and memory sectors. Samsung Electronics on Thursday projected a 783% jump in third-quarter operating profit to 107.4 trillion won ($80.17 billion), though its shares eased 0.3%.
For now, the market is left to weigh the promise of AI against the mounting debt that funds it. The outcome will depend on whether the expected profits materialize before the bills come due.
