US tech giants issue massive debt to fund AI, unexpectedly pushing up credit risk for "safest companies" with no AI connection
US tech companies like Meta, Google, and Amazon have issued hundreds of billions of dollars in debt this year to fund their artificial intelligence (AI) ambitions, Bloomberg Markets reported. Strategists at BNP Paribas noted that this wave of debt issuance is intensifying competition for cash in credit markets, leading to increased credit default swap (CDS) costs even for "the safest companies" unrelated to data centers or AI.
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