Technology
AI Debt Issuance Defies Rising Yields as SpaceX, Broadcom Plan Major Deals
Key Points
AI Issuers Are Upending Longstanding Safety Valve Takeaways by Bloomberg AI When financing gets more expensive, companies usually slow down their bond sales. Tech companies have instead been ramping up this year, and talk this week of potential big financings from SpaceX and Broadcom Inc. only amplified investor fears about the wave of coming debt. Big tech companies known as hyperscalers are willing to pay higher yields, because they’re borrowing to fund artificial intelligence investments...
AI Issuers Are Upending Longstanding Safety Valve
Takeaways by Bloomberg AI
When financing gets more expensive, companies usually slow down their bond sales. Tech companies have instead been ramping up this year, and talk this week of potential big financings from SpaceX and Broadcom Inc. only amplified investor fears about the wave of coming debt.
Big tech companies known as hyperscalers are willing to pay higher yields, because they’re borrowing to fund artificial intelligence investments like data centers and AI chips, and their potential profits are enormous. OpenAI expects its annualized revenue to reach $70 billion or more by the end of the year.