Investors are starting to push back on the debt funding the AI buildout.
Long dated bonds tied to major AI infrastructure spenders have sold off as Big Tech’s borrowing spree tests market appetite for securities linked to years of data center expansion, chip demand and AI monetization.
Amazon, Alphabet, Meta, Microsoft and Oracle have been raising capital to fund data centers, processors and power infrastructure. Big Tech borrowing tied to the AI boom has climbed to about $159 billion this year, turning one of the market’s strongest growth trades into a larger test for credit investors.
The pressure has been clearest in bonds with maturities of 10 years or more. Shorter dated debt still offers exposure to companies with strong cash flow and high credit ratings. Longer dated bonds ask investors to underwrite the economics of AI infrastructure far into the future.
That is becoming a harder sell.
