Arabic version: مستثمرو السندات يتساءلون عن ارتفاع الإنفاق الرأسمالي على الذكاء الاصطناعي
According to Cnbc, fixed-income investors are becoming increasingly uncomfortable with the capital required for the artificial intelligence buildout. Google, Amazon and Meta are seeing credit spreads widen as investors demand greater reward for lending to the companies, while yields rose this week after Alphabet increased its capital-expenditure forecast for its AI expansion.
The higher forecast raised concern that other hyperscalers could also increase spending. Rising power costs are contributing to bigger capex budgets as companies build large data centers across the United States. GE Vernova CEO Scott Strazik told CNBC that he expects the current inflationary environment to persist, driven in part by the heightened geopolitical backdrop. Oil moved above $100 a barrel this week.
Mizuho told clients Friday that capex increases are testing investor limits. Its analysts said the hyperscalers are on track to collectively spend more on capex than they generate in free cash flow by next year. A portfolio manager at a credit fund, who asked to remain anonymous, said the trend is creating intense discussions between bond and equity investors with exposure to major technology companies.
Oracle’s five-year credit default swap is again trading at a multi-year high. Barclays credit analyst Andrew Keches wrote that Oracle’s CDS is being viewed as a proxy for AI debt fears and a liquid hedge on AI capex, OpenAI execution and broader data-center spending narratives. Earlier this month, S&P Global downgraded Oracle’s credit rating to BBB-, one notch above junk status.
Portfolio managers told CNBC that rising technology-bond yields could affect financing for future projects. Meta is seeking to finance a $12 billion Texas data center, with pricing expected to be finalized early next week, according to a source familiar with the talks. The Financial Times reported that the deal will carry a higher borrowing rate than previous projects, reflecting investor questions about returns on investment.
