How AI Can Magnify Your Tech Debt - and 4 Ways to Avoid that Trap
Hyperscaler tech firms raised $121 billion in AI-related debt year-to-date, potentially increasing U.S. corporate bond market risks by up to $700 billion, analysts warn.
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More Big Tech company debt 'would increase the macro risks associated with the AI build-out,’ Goldman Sachs warns
The increase in debt-funded capital expenditure (capex) by the big “hyperscaler” tech companies is adding to the level of risk in the AI economy, according to Goldman Sachs. Those companies—Amazon, Google, Meta, Microsoft, and Oracle specifically—have taken on $121 billion in debt, year-to-date, up from $28 billion on average over the previous five years. “While the degree of public company leverage remains small, a continued shift toward debt f…
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