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Banks cool on debt backing for Stargate AI expansion
Major banks are growing cautious on funding Stargate as high borrowing costs, long payback periods, and uncertain AI revenues dampen enthusiasm.
Bank lenders are reassessing financing for Stargate, a massive AI infrastructure project linked to Oracle and OpenAI. Sources say JPMorgan and peers show reduced appetite for long term debt exposure. High interest rates, heavy capital requirements, and unclear monetization timelines have complicated loan talks. Analysts note banks increasingly prefer projects with faster cash flows before committing billions to large scale artificial intelligence buildouts worldwide expansion.