Arabic version: مخاطر الديون وتراجع الذكاء الاصطناعي يختبران الأسواق العالمية

According to ABC News, investors are weighing two mounting threats: rising sovereign debt costs and a potential reversal in the artificial intelligence investment boom. Borrowing costs have been repriced sharply over the past eight weeks, with interest rates seen as the likely trigger for any broader market meltdown.

The US government’s long-term borrowing costs have risen as bond markets focus on the cost of the war in Iran and massive tax cuts. US debt is equivalent to 126 per cent of economic output, its highest post-war level, while annual interest costs on $US40 trillion ($56 trillion) of debt have exceeded $US1 trillion.

AI-related investments have also come under pressure. Firmus’s $44 billion float struggled, while NextDC shares fell 42 per cent after Melbourne residents delayed a data centre project. CoreWeave shares dropped 36 per cent in a month amid debt concerns, and the Nasdaq recorded its worst fortnight since April as resistance to data-centre development grew.

Australia’s corporate regulator, the Australian Securities and Investments Commission, is reviewing risks across markets including the ASX, private credit, fixed income, commodities and foreign exchange. Commissioner Simone Constant said the watchdog’s focus is on resilience and transparency as global markets become more integrated and volatility rises.

Large technology companies have increasingly used debt to finance AI expansion. Alphabet, Amazon, Meta and Microsoft have raised more than $US200 billion between them this year, while Nvidia has raised more than $US80 billion. A slowdown in data-centre construction, weaker-than-expected revenue or cheaper competing AI technology could put pressure on firms carrying those debts.