Reported about 5 hours ago
The surge in AI-driven investments has led to significant debt financing for data centres, with $75 billion in investment grade debt issued in just two months. While major tech companies like Oracle and Meta are seeing large earnings boosts, concerns about rising credit risks and the impact of complex debt structures are emerging. Observers are particularly wary of increasing junk bond issuances and the growing role of private credit in funding these ventures, raising questions about the financial stability of the AI sector.
Source: YAHOO