caution
Big Tech Firms Borrow $100B+ in Debt to Fuel AI Push
Major technology companies like Alphabet, Amazon, Meta, Microsoft and Oracle have issued over $100 billion in bonds this year to fund massive AI investments, according to analysts. The surge in debt issuance comes amid loose borrowing conditions, but raises red flags - some strategists warn that financing AI capex through debt, not free cash flow, could increase corporate risk if markets correct.
HSBC and Capital Economics among others are cautioning that this could create a bubble in the tech-credit space. (Business Insider)
Companies:
- Alphabet
- Amazon
- Meta
- Microsoft
- Oracle
Tags:
- tech
- debt
caution
Big Tech Firms Borrow $100B+ in Debt to Fuel AI Push
Major technology companies like Alphabet, Amazon, Meta, Microsoft and Oracle have issued over $100 billion in bonds this year to fund massive AI investments, according to analysts. The surge in debt issuance comes amid loose borrowing conditions, but raises red flags - some strategists warn that financing AI capex through debt, not free cash flow, could increase corporate risk if markets correct.
HSBC and Capital Economics among others are cautioning that this could create a bubble in the tech-credit space. (Business Insider)
Companies:
- Alphabet
- Amazon
- Meta
- Microsoft
- Oracle
Tags:
- tech
- debt
Breaking
caution
Big Tech Firms Borrow $100B+ in Debt to Fuel AI Push
1 min read
81 words
Big tech’s $100B debt binge to fund AI is raising alarm: analysts warn of rising risk if markets tumble.
Major technology companies like Alphabet, Amazon, Meta, Microsoft and Oracle have issued over $100 billion in bonds this year to fund massive AI investments, according to analysts. The surge in debt issuance comes amid loose borrowing conditions, but raises red flags - some strategists warn that financing AI capex through debt, not free cash flow, could increase corporate risk if markets correct.
HSBC and Capital Economics among others are cautioning that this could create a bubble in the tech-credit space. (Business Insider)
Major technology companies like Alphabet, Amazon, Meta, Microsoft and Oracle have issued over $100 billion in bonds this year to fund massive AI investments, according to analysts. The surge in debt issuance comes amid loose borrowing conditions, but raises red flags - some strategists warn that financing AI capex through debt, not free cash flow, could increase corporate risk if markets correct.
HSBC and Capital Economics among others are cautioning that this could create a bubble in the tech-credit space. (Business Insider)
Companies:
- Alphabet
- Amazon
- Meta
- Microsoft
- Oracle
Tags:
- tech
- debt
- tech
- debt
- ai
- markets
- risk