AI infrastructure funding has room to grow as hyperscalers can raise USD 1.7 tn more debt: J.P. Morgan

New York [US], August 6 (ANI): Major technology companies financing artificial intelligence (AI) infrastructure still have significant room to raise debt despite recent volatility in AI-related bond markets, with J.P. Morgan estimating that hyperscalers could collectively issue around USD 1.7 trillion of additional high-grade debt before reaching levels that could attract greater investor concentration concerns.

The report said recent weakness in AI-related bonds reflects investors demanding higher pricing for new issuances rather than concerns that the market has reached its capacity to absorb additional debt.