The combined debt of the Magnificent Seven US technology companies rose about 45% to $578 billion by mid-2026 as they borrowed to build AI data centres, SBI Research, State Bank of India’s economic research department, said in a report covered on 2 November 2026. It warns rising US bond yields could erase $1.67-2 trillion of their market value.

The group covers Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. Their borrowing stood at roughly $399 billion in 2025 and is now about 1.7 times the 2023 level, the report said. The numbers land in a week when investors have grown wary of AI spending, with OpenAI cutting its funding target as the AI selloff deepened.

What SBI Research found on Magnificent Seven debt

The report says the debt on the balance sheet is only part of the picture. The seven companies also carry large off-balance-sheet commitments, such as purchase and investment obligations, tied to their AI build-out.

• Debt: about $578 billion by mid-2026, up nearly 45% from about $399 billion in 2025.
• Market value at stake: a possible fall of $1.67-2 trillion from a combined value of about $23 trillion, based on an equity duration approach.
• Why: higher Treasury yields raise the discount rate applied to future earnings, which hurts long-duration growth stocks the most.
• Federal Reserve: unrealised losses on its Treasury holdings rose by $26.3 billion to $561.5 billion between December 2025 and June 2026, as the US 10-year yield climbed from 4.18% to 4.44%.

“Higher borrowing costs and rising Treasury yields could put pressure on their valuations by increasing the discount rate applied to future earnings,” the report cautioned.

Anthropic’s listing as a litmus test for AI spending

SBI Research described the expected listing of Anthropic, likely around 12 November with a target valuation of $1.5-2 trillion, as a “high-stakes litmus test” for the AI boom. Public investors will get to judge whether enterprise AI revenue can justify the infrastructure and compute bills behind it. Elets CIO earlier reported on Anthropic’s Nasdaq IPO filing and what it reveals about India as Claude’s No. 2 market.

The financing pressure is visible across the sector. Meta has launched a plan to raise up to $95 billion through stock offerings to fund its AI expansion, with chipmakers stepping in as investors, following NVIDIA’s $3 billion investment in Meta.

Why Big Tech’s AI debt matters for Indian CIOs

Most Indian enterprises buy their cloud, models and AI tools from these same companies, so their balance sheets shape the prices, contract terms and capacity Indian buyers will see. If the cost of capital keeps rising, hyperscalers may push harder to recover AI spending through pricing, or slow parts of their build-out.

India is also a destination for that capital. The country has drawn large data centre pledges, though a recent study found India’s $300 billion in data centre pledges sit alongside GPUs running at about 20% use. For technology leaders, that makes the SBI warning a prompt to stress-test AI budgets: watch for multi-year pricing locks, keep workloads portable across providers, and tie each AI project to measurable returns.

Key takeaways

• Magnificent Seven debt rose about 45% to $578 billion by mid-2026 on AI infrastructure spending, SBI Research said.
• Higher US yields could cut $1.67-2 trillion from the group’s roughly $23 trillion market value.
• SBI Research sees Anthropic’s expected listing as a test of whether AI revenue can cover AI costs.

FAQ

Which companies make up the Magnificent Seven?

Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla, the seven largest US technology stocks by market value.

How much debt do they hold now?

About $578 billion by mid-2026, up nearly 45% from around $399 billion in 2025, according to SBI Research.

Where can I read SBI’s research?

SBI publishes its Ecowrap reports on the SBI Research Desk.

Featured image: Aerial view of the Google data centre in Council Bluffs, Iowa. Photo: Chad Davis via Wikimedia Commons (CC BY 2.0).

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