FSB warns private credit to AI firms risks investor losses
The Financial Stability Board (FSB) is sounding the alarm about how much private credit is now flowing into artificial intelligence (AI) companies.
In 2025, over one-third of all private credit deals involved AI firms—way up from just a few years ago.
AI firms have turned to private lenders to fund datacentres and other infrastructure, but the FSB says sudden shifts (like power shortages or too many new projects) could mean big losses for investors and possible project delays or cancelations.
Banks face borrower opacity risks
Banks are jumping deeper into private credit, either lending directly or teaming up with asset managers.
The catch? There is often not enough information about who is borrowing, which leaves banks exposed if things go south.
The collapse of companies like Tricolor and First Brands last year hit major banks hard, showing just how quickly risks can spread when the system gets shaky.