Morgan Stanley warns of rising credit risk as big tech borrows billions for AI

businessinsider.com

Big Tech companies are issuing billions in new bonds to fund AI projects, raising concerns about overborrowing. Morgan Stanley flags that credit risk may be undervalued, citing light investor demand for recent Amazon bond offerings and widening spreads on other tech debt. Mega-cap tech giants have significantly increased borrowing this year, with AI debt projected to reach $7 trillion by 2029.


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Morgan Stanley warns of rising credit risk as big tech borrows billions for AI | News Minimalist