Rishi Sunak Predicts Big Tech Will Out-Borrow US Government by 2027

Rishi Sunak, the former Prime Minister of the UK, has made a bold prediction regarding the borrowing capabilities of major technology companies. Speaking at the Bloomberg New Economy Forum in New Delhi on October 13, 2026, he stated that tech giants are set to out-borrow the US government by 2027, attributing this shift to substantial investments in artificial intelligence (AI).

Sunak's forecast focuses on the so-called 'hyperscalers'—large cloud and AI operators such as Meta, Alphabet, Amazon, Microsoft, and Oracle. He noted that these companies are on track to become net issuers of long-term debt, with projections suggesting they could issue between $250 billion and $400 billion in bonds next year.

As of early September 2026, global AI-related debt issuance had already reached approximately $450 billion, doubling the total from 2025. The Bank of England reported that hyperscalers accounted for 47% of sterling corporate bond sales in the UK this year, indicating a significant trend in corporate borrowing.

The Bank of England has raised concerns regarding the financial stability implications of this AI-driven borrowing spree, particularly regarding opaque financing structures and potential corporate debt pressures if anticipated productivity gains from AI do not materialize.

For investors, this surge in corporate bond issuance may provide more options for long-dated yields outside of government bonds. The current landscape suggests that if hyperscalers continue to capture significant market share in various currency markets, Sunak's prediction may soon be seen as a reflection of ongoing trends rather than a speculative forecast.