Goldman Sachs is raising concerns about the risks associated with the surge in AI infrastructure investments. The top five US hyperscalers, Amazon, Alphabet, Microsoft, Oracle and Meta, are expected to spend approximately $800 billion on AI infrastructure in 2026, nearly double the $413 billion spent in 2025. The bank estimates the annual shortfall at roughly $230 billion, as AI-related cloud revenue reaches only $70 billion above pre-AI trends. The US bond market is already feeling the pressure, with AI-related convertible issuance accounting for 44% of the total and investment-grade debt potentially reaching a record $2.3 trillion. Goldman Sachs Asset Management has taken an underweight position on hyperscaler debt while maintaining a positive long-term view on AI.
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