Image: BenzingaBond Markets Are Rethinking Big Tech’s $1 Trillion+ a Year for AI - Meta Platforms (NASDAQ:META), Amazon. - Benzinga
• Major tech companies, including Meta and Amazon, are spending over $1 trillion annually on AI infrastructure, significantly reducing their free cash flow. • To fund this expansion, hyperscalers may issue approximately $175 billion in debt this year, a massive increase from the five-year average of $30 billion. • Oracle serves as a primary example of this financial strain, with its credit-default swap spread exceeding 125 basis points—a level not seen since the 2009 financial crisis.
benzinga.com
