AI build-out financing

Common card · No. 205782

To finance the build-out of AI data centres during the 2020s, an unprecedented amount of capital has been mobilised in the USA in particular amid a broad competition for global technological supremacy in artificial intelligence. By September 2026, analysis showed AI capital spending was larger and faster than during any previous technological boom. Early AI investment was funded primarily with operating cash flow, but by 2026 the bond market came to dominate the financing. The surge in new AI debt increased borrowing costs across other sectors of the economy. Citigroup forecast in December 2025 that $2.8 trillion of capital would be spent for AI data centre infrastructure in the US by 2030, while McKinsey estimated that almost $7 trillion would be spent globally by that time. In 2026, American hyperscalers such as Microsoft, Amazon and Google's parent Alphabet were expected to spend $764 billion on AI infrastructure. Their Chinese counterparts were second at $102 billion. The Wall Street...

Read on Wikipedia