Banks, investors grow wary of AI debt, spooked by market selloff

Banks and credit investors are upping their scrutiny of AI-related debt deals while showing reluctance to increase exposure to borrowers, jolted by the recent market selloff and changing sentiment toward the technology’s growth trajectory.

Some banks, which just a few weeks ago were lining up to fund AI deals, are now telling market participants they would be reluctant to finance additional deals even when they involve guarantees from the sector’s marquee technology companies, according to several banking and credit sources.