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News in English (USA) / 12.11.2025 / 19:00

The AI Boom Faces Cash Crunch and Rising Debt Risks

The rapid expansion of artificial intelligence (AI) has led to immense capital needs, with estimates suggesting that global AI and data center spending could reach $5 trillion. Major financial institutions are sounding alarms about the cash crunch facing the sector, as Bank of America warns of a potential bubble due to escalating debt funding. Analysts from J.P. Morgan have pointed out that the required annual revenue to achieve even a modest return on AI investments amounts to $650 billion. This financial strain is pushing tech giants deeper into debt, with firms like Amazon reportedly preparing for significant bond deals to help finance their AI initiatives. As the AI boom intensifies, concerns are rising regarding the sustainability of this growth, with speculation that the bond market might not reflect an impending bubble despite the overwhelming need for funding. Overall, the landscape is becoming increasingly complex, with Wall Street adapting to support this unprecedented AI infrastructure build-out amid fears of a looming financial crisis.
Center for Public Enterprise, Yahoo Finance, The New York Times, Bloomberg.com, "Toms Hardware", Financial Times, The Wall Street Journal, Business Insider, The Information, Reuters