Citadel Securities is predicting that $500 billion of debt will be issued across public and private markets by 2028 to fund the chips powering artificial intelligence campuses.
Most of the issuance will likely be shorter-term, with maturities of three to five years to align with the lifespan of AI chips, while some could come through Rule 144A private offierings, Bloomberg reported.
Jeff Eason, head of investment-grade desk analyst at Citadel Securities, told Bloomberg that this has the potential to become "one of the largest new sectors in investment-grade credit."
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