AI Boom Fueled by $121B Debt, Raising Credit Risks

The AI boom is fueled by a massive debt surge, with companies like SoftBank, Oracle, and CoreWeave borrowing billions. OpenAIs partners have taken on ninety-six billion in debt, with more under discussion. This shift marks a new phase in AI development, as major tech players previously funded their initiatives from cash reserves. CoreWeave, in particular, faces scrutiny due to its substantial debt obligations and low revenue projections. The five largest hyperscalers have collectively taken on one hundred twenty-one billion in new debt this year, impacting credit markets and signaling a higher risk of default. The AI boom is now heavily reliant on public credit markets for funding.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.