The AI-led borrowing frenzy could end up driving interest rates higher, Apollo's chief economist says

AI spending from Big Tech hyperscalers is expected to surge again in 2026. Torsten Sløk of Apollo thinks AI-driven corporate borrowing could drive up interest rates. He said that new investment-grade bond issuance could pull buyers away from the Treasury market. A top economist has a fresh warning about debt-fueled capex spending in 2026. Torsten Sløk, the chief economist at Apollo Global Management, flagged expectations that AI hyperscalers will be significant drivers of investment-grade bond is ...