The Bond Market's Warning Sign for the AI Boom The recent $25 billion bond sale by Amazon was touted as a surprise offering, but it reveals a more ominous trend: the unsustainable pace of investment in artificial intelligence.
Investors may not be panicking just yet, but data suggests a growing mismatch between the AI industry's aggressive spending and the market's willingness to absorb that debt.
This year alone, hyperscalers like Amazon have issued over $194 billion in AI related bonds, more than double the amount issued in 2021.