Pimco CEO Warns: AI Companies Risk Borrowing "Too Much" ($10 Trillion)
Key PointsAt a recent conference, the CEO of Pimco said that he sees a risk of AI company debt reaching a point where it’s “too much” and in case of a downturn, “things are going to break.”
Pimco CEO Emmanuel Roman warned at a November 3 conference that artificial intelligence companies face the risk of borrowing too much. Roman indicated that if a downturn occurs, the level of debt could reach a point where "things are going to break," according to Nasdaq Markets.
The Motley Fool reports that Roman projects AI companies could borrow up to $10 trillion over the next five years. This amount would nearly equal the $12.1 trillion U.S. corporate bond market. Major technology firms, including Amazon, Alphabet, Meta Platforms, and Oracle, are currently issuing hundreds of billions of dollars in corporate debt to fund data centers and AI infrastructure.
Brief written by urgent.news from Nasdaq Markets, Motley Fool — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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