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Express News | OpenAI has paused development of its new model Astra over concerns that it possesses capabilities for critical cyberattacks.
AI debt frenzy faces 'indigestion' as Wall Street re-evaluates the surge in bond issuance by tech giants
Since the beginning of this year, technology giants such as NVIDIA and Amazon have raised over $200 billion in the U.S. investment-grade bond market to support AI infrastructure, marking a sharp year-over-year increase. This surge has led to widespread new-issue underperformance and weakness in the secondary market. To address this 'indigestion,' underwriters have adjusted their strategies—enhancing roadshows, targeting long-term investors, and proactively managing financing expectations to stabilize performance. Despite market pressures, demand for financing AI data centers remains robust, with an estimated $50–60 billion in new bonds expected to be issued after the U.S. Labor Day holiday, suggesting that supply-side pressure may persist.
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