Tech giants' AI borrowing strains investors after Amazon $25B bond
Business
Tech giants are borrowing big to fund their AI ambitions, but investors are starting to feel the strain.
Amazon's latest $25 billion bond sale came with much higher interest costs, double last year's rates, which signals that lenders see more risk in tech right now.
AI debt sales hit $220B
AI-driven debt sales have exploded, hitting $220 billion this year compared to just $12.5 billion a year ago.
With so many new bonds, investors are bumping up against their own limits on how much tech debt they can hold.
Even companies like Alphabet have had to offer sweeter deals to attract buyers, and analysts warn that if this borrowing binge keeps up, it could get even pricier for tech firms down the road.