Business & Finance
AI Debt Spree Hammers Tech Debt as Traders Rush to Reprice Risk
Key Points
AI Debt Spree Hammers Tech Debt as Traders Rush to Reprice Risk The rush to finance AI is rattling investors in the more than $10 trillion US corporate market, sparking a repricing of risks around some of the biggest technology companies that’s showing up in spiking prices for credit insurance, heightened volatility and weakening preformance. Heavyweights including Oracle Corp., Broadcom Inc. and SpaceX are among the borrowers that priced nearly half a trillion dollars of new debt this year...
AI Debt Spree Hammers Tech Debt as Traders Rush to Reprice Risk
The rush to finance AI is rattling investors in the more than $10 trillion US corporate market, sparking a repricing of risks around some of the biggest technology companies that’s showing up in spiking prices for credit insurance, heightened volatility and weakening preformance.
Heavyweights including Oracle Corp., Broadcom Inc. and SpaceX are among the borrowers that priced nearly half a trillion dollars of new debt this year to pay for the infrastructure powering artificial intelligence, according to data compiled by Bloomberg. The tally is widely expected to rise by orders of magnitude in the months and years ahead. Broadcom alone may raise about $600 billion to finance computing power in the coming years, according to Bloomberg calculations.