The AI Debt Bubble: A Ticking Time Bomb for Tech Giants The bond market is signaling growing anxiety over the massive capital expenditures required by tech companies to fuel their artificial intelligence buildout.
This unease is reflected in widening credit spreads and higher yields on concerns that other hyperscalers may follow suit, as seen with Google, Amazon, and Meta.
At the heart of the issue is the rising cost of power for large data centers across the US, a major expense for these companies.