Tech firms increase borrowing for AI growth
Major technology companies, such as Google, Amazon, Meta, Microsoft, and Oracle, are increasingly relying on borrowing to finance significant investments in artificial intelligence. Reports forecast that these companies will spend around $800 billion this year and $1.2 trillion next year. Their debt issuances have exceeded $400 billion since the beginning of the year, with American firms accounting for about 90% of that total. This development coincides with a rise in yields on U.S. 10- and 30-year Treasury bonds, raising concerns about its impact on borrowing costs. Currently, it is unlikely to lead to widespread competition in credit markets due to the differing profiles of investors.
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