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fromwww.mercurynews.com
4 days agoBig tech's AI debt wave threatening to swamp credit markets
Large-scale debt issuance by Big Tech to fund AI and data centers risks overwhelming bond markets and widening credit spreads globally.
All that revenue growth may slow down if hyperscalers abruptly scale back their AI buildout plans. , for example, carried more debt on its balance sheet than cash in Q2 due to the aggressive AI expenditure. In Q4 2024, it had a net cash position of almost $22 billion. This is being called "Big Tech's debt boom" as the cash flow is not enough to fund data center development.