Big Tech’s Debt Binge Raises Risk in Race to Create an AI World

Equity investors are growing increasingly concerned about the amount of leverage that Big Tech is taking on to build out its artificial intelligence infrastructure as the industry faces rising fears of a bubble.

The enormous sums major technology companies are spending on AI are nothing new, but the record pile of debt they’re raising to do it is. What’s worrying stock traders is the trend represents a break from recent history, when companies tapped their huge cash piles to pay for their capital expenditures. The use of leverage and the circular nature of many of the financing deals introduces a ...