The rapid expansion of artificial intelligence (AI) has created significant turmoil in credit markets as bond traders grapple with over $70 billion in shadow credit backstops related to AI companies. This unprecedented borrowing spree by tech giants is causing fears of hidden debt and rising risks associated with capital expenditures, contributing to a surge in bond yields that threatens overall market stability and growth. Analysts point out a staggering $1 trillion financing gap within the AI buildout, which is reshaping opportunities in private credit and putting pressure on the credit quality of major firms like Amazon and Meta. With real bond yields hitting multi-year highs, concerns are mounting about the sustainability of this debt-fueled boom in AI infrastructure and its implications for global economic health.