AI Funding Surge Raises Debt Concerns
Update: 2025-12-12
Description
AI funding surges to $125 billion, raising concerns about debt-driven growth. Major tech companies turn to debt for AI infrastructure, creating opportunities and challenges for investors. Oracles AI spending and weaker forecasts lead to a tech sell-off, with debt levels and credit default swaps reaching five-year highs. Private credit and securitized products, like asset-backed securities, are also being explored for AI funding, but with caution due to past financial crises.
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