Original Source
Wall Street Warns of Credit Risk from AI Infrastructure Debt Surge
AI Infrastructure Investment Fuels Credit Risk Concerns
The accelerating borrowing tied to the artificial intelligence (AI) data center investment boom is rapidly becoming a leading potential credit risk on Wall Street. Investors are increasingly concerned that the rapid pace of financing expansion could lay the groundwork for the next market shock. This sentiment is reflected in a recent global fund manager survey by Bank of America, where approximately 34% of respondents identified capital expenditures by AI 'super cloud' providers as the most likely trigger for future systemic credit events, double the percentage from April.
Massive Borrowing and Uncertain Returns Raise Alarm
Since early last year, technology companies have borrowed over $300 billion from U.S. investors for AI-related investments. JPMorgan Chase leveraged finance managing director David De Boltz stated in a Bloomberg TV interview that the scale of financing seen has indeed expanded 'exponentially.' Market participants are concerned that these companies are leveraging up to build AI infrastructure on an unprecedented scale, while the returns on these investments remain uncertain. The Bank of America global fund manager survey was conducted between May 8 and May 14, involving over 150 respondents.
*Source: 經濟日報 (2026-05-20)*
Related Articles
📧 Daily Newsletter
Get the daily global news briefing in your inbox every morning.
It's still free.