Measuring risk in the AI financing boom
A shift towards debt raises the potential fallout from the data centre spending spree
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Big tech’s big gamble
How much AI is the market willing to finance?
Banks seek to offload risk to avoid ‘choking’ on data centre debt
Global lenders explore private deals and risk transfers to cut exposure to AI boom
Investors seek protection from risk of AI debt bust
Trading in insurance-like products that protect against tech company defaults is booming
OpenAI makes five-year business plan to meet $1tn spending pledges
New revenue lines, debt partnerships and further fundraising targeted to cover enormous costs
The risky bet by AI start-ups
Broader, integrated software platforms for business will win out against those selling specific services
So much of credit securitisation still relies on magical thinking
Rather than financial alchemy, such deals involve mispricing, reduced capital buffers and hidden risks