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The boat, helmed by New Zealander Dean Barker, capsized just after they rounded the final mark in their race against Italian entry Luna Rossa on Sunday.
Patriot was on foils and flying when the crew lost control and the AC75 went over.
The boat could not be righted quickly. All 11 crew appeared to be accounted for as chase boats moved in to assist.
The Americans were forced out of the race that they were leading, giving Luna Rossa their first win of the day.
American Magic had been struggling in this regatta and had lost three previous races - to leave them at the bottom of the standings.
Despite the damage, the boat is still above the water.