AI is getting so big that it might actually make it more expensive for everyone to borrow money.
Howard Marks, who co-founded Oaktree Capital, says global AI-related debt issuance has reached nearly $600 billion this year, and he estimates AI could require an average of $1 trillion in new capital annually in the coming years.
That's not only shaking up the stock market: it's also making waves in how lenders and investors think about risk.
Hyperscalers surge in US investment-grade bonds
Hyperscalers are now a much bigger part of the US investment-grade bond market, jumping from just 1% to nearly 10% in two years.
Because of this rapid growth, banks and investors are looking harder at how these companies handle things like contracts and equipment that wears out quickly.
All this extra scrutiny could mean higher borrowing costs for anyone trying to fund big tech projects.