Is AI heading for its own 2008? Nearly half a TRILLION dollars of AI-related debt was sold by early September, DOUBLE 2025, Morgan Stanley estimates. The latest borrower is Musk's SpaceX, which reportedly wants $40 BILLION for Nvidia chips. All that borrowing is one of the forces pushing up bond yields, with the US 10-year hitting its highest since 2002 last week. Here's who's been borrowing big this year: Anthropic's Google chip deal: $60 BILLION Amazon bonds: $54 BILLION SpaceX chip deal: $40 BILLION (planned) Apollo's June chip deal: $35 BILLION Alphabet bonds: almost $32 BILLION Oracle bonds: $25 BILLION SpaceX bonds: $25 BILLION Why some investors are nervous: SpaceX's 2056 bonds already trade at about 85 cents on the dollar, with a yield premium similar to high-yield bonds Nvidia may back up to 25% of chip value so its smaller customers can borrow more cheaply In October 2007, the S&P 500 hit a record high, two months after credit markets froze. It then fell 57% as the financial crisis hit. On Tuesday, the S&P 500 closed at a record again. Michael Burry, the Big Short investor who bet against housing before 2008, has warned that "off balance sheet liabilities today are putting both 2000 and 2008 to shame."