Banks demand demonstrable financial strength from AI firms, says JPMorgan
Just calling your company AI isn't cutting it with banks anymore.
JPMorgan says lenders now want to see real financial strength: think steady cash flow, smart debt management, and proof you can actually fund your projects.
This shift comes as insuring against AI company defaults is more expensive than ever, so banks are playing it safe.
Nasdaq down 6.7% since early October
It's not just AI-linked firms feeling the heat. Tech is also taking a hit, and crypto could be affected.
The Nasdaq has dropped 6.7% since early October, with big names like NVIDIA and Oracle seeing losses.
Meanwhile, weekly trading in credit default swaps for bonds issued by Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and NVIDIA averaged more than $9 billion in September, showing investors are extra cautious about which companies can actually pay their bills.