Wall Street’s AI Debt Machine Is Starting to Choke on Supply

‘A new anxiety is gripping Wall Street as it bankrolls the vast network of data centers and chips behind the artificial intelligence boom: Early signs suggest that the credit market is approaching the limits of how much more debt it can absorb.‘ www.bloomberg.com/news/article...

Here's your "the economy is doing just fine" story of the day from Bloomberg. Gift link: www.bloomberg.com/news/article...

Investors looking at AI debt center debt have suddenly(!) realized that the developers have no idea when they'll get powered up or when they'll need to bail. Apparently the developers' repayment obligations are very iffy, with all kinds of cancellation rights and other escape clauses.

One of the biggest stories out there. The world runs on debt, and this enormous demand from the AI sector is causing the price of taking out debt to rise for everyone. Good if you are a lender, I suppose.

www.bloomberg.com/news/article...

www.bloomberg.com/news/article...

www.bloomberg.com/news/article...

Keep choking. "A new anxiety is gripping Wall Street as it bankrolls the vast network of data centers and chips behind the artificial intelligence boom: Early signs suggest that the credit market is approaching the limits of how much more debt it can absorb."

Credit markets show strain funding AI infrastructure as yields on data center bonds and loans soar into double digits