debt

Lambda raises $1 billion in debt to purchase Nvidia's AI chips for leasing to Microsoft, reflecting the increasing use of debt financing in AI infrastructure.

DeepSeek originally represented lower-cost AI, but it might have prompted American tech giants to engage in a more aggressive debt race. BofA predicts that Hyperscaler's investment-grade debt scale will increase significantly.

Bloomberg reports that rapidly advancing AI tools threaten the business model of software companies loaded with private equity debt, potentially triggering a 'SaaSpocalypse' with broad financial consequences.

This article examines the massive off-balance-sheet AI-related commitments of big tech companies, arguing that the 'Enron' comparison is overblown. However, it warns that circular financing, aggressive accounting, and the 'big market illusion' deserve close attention, and discusses the cross-investments and financing risks among companies like Nvidia and OpenAI.

Banks are preparing to offload $15bn of debt financing Anthropic's data centre, a project backed by Google.

A CEO shares his story of building a one-person company with AI, resulting in $1.3 billion in debt.

This paper from the Bank for International Settlements examines the financing of the AI boom, focusing on the shift from cash flows to debt.

Oracle has laid off 21,000 employees amid a shift towards AI and cloud services, financing its data center expansion through significant debt despite investor concerns.