Episode Details

The Big Tech companies driving the AI boom are expected to spend more than $700 billion on data center infrastructure this year. To finance this spending spree, they're increasingly looking to debt.

Hyperscalers like Alphabet, Oracle, and Meta have been issuing corporate bonds at a scale the industry has never seen — nearly a quarter of a trillion dollars this year so far. The bond market could be considered a less risky way than stocks for investors to get a piece of the AI hype.

To explain what the flood of AI debt means for the bond market, we’re joined by Julie Ask, an independent industry analyst at Ask Advisory.

More on this:

• “The Quarter-Trillion-Dollar Onslaught of AI Bonds Is Testing Investors’ Limits” from the Wall Street Journal
• “AI has taken over the stock market. The bond market is next.” from The Economist