AI Debt Explosion Has Traders Searching for Cover: Credit Weekly

As technology companies prepare to borrow hundreds of billions of dollars to invest in artificial intelligence, lenders and investors are increasingly seeking ways to protect themselves from potential risks. This surge in borrowing, referred to as the AI debt explosion, raises concerns about the financial implications for both the tech sector and the broader market. The growing caution among lenders reflects a heightened awareness of the risks associated with such significant investments in AI technology.