At $1.2 Trillion, More High-Grade Debt Now Tied to AI Than Banks

The amount of debt tied to artificial intelligence has ballooned to $1.2 trillion, making it the largest segment in the investment-grade market, according to JPMorgan Chase & Co.

AI companies now make up 14% of the high-grade market from 11.5% in 2020, surpassing US banks, the largest sector on the JPMorgan US Liquid Index (JULI) index at 11.7%, JPMorgan analysts including Nathaniel Rosenbaum and Erica Spear wrote in a note Monday.

The analysts identified 75 companies across tech, utilities and capital goods sectors that are closely tied to AI, including Oracle Corp., Apple Inc. and Duke Energy Corp. Many of ...