Private Credit-Powered AI Boom at Risk of Overheating, UBS Says

Private credit lenders, and their deep pockets, are rapidly becoming an important source of capital for artificial intelligence development. That’s raising concerns at UBS Global Research.

As private credit grows beyond its roots of lending to smaller, heavily indebted companies, large-scale tech firms have started to see the asset class as a way to fulfill their growing capital needs. Private debt had about $450 billion loaned to the technology sector as of early 2025, up $100 billion from 12 months earlier, according to UBS estimates. For business development companies — or funds that hold direct corporate loans — tech lending ...