Rising bond yields make AI infrastructure debt more expensive

The 10-year Treasury yield has climbed to about 5.17%, its highest since 2007, raising borrowing costs for AI companies. JPMorgan estimates $4.1 trillion in AI-related debt will be issued through 2030, while SoftBank raised $11.1 billion in junk bonds at yields up to 9.75%.

• 10-year Treasury yield near 5.17%, highest since 2007
• JPMorgan: $4.1 trillion in AI-related debt to be issued through 2030
• SoftBank raised $11.1 billion in junk bonds with yields up to 9.75%
• CoreWeave: a 100-basis-point rate rise adds $30 million to interest expense