Investors grow nervous over AI bubble as capex, debt and valuations climb
Overview
Investors are increasingly worried that the AI bubble will burst, according to Semafor, which cites rising interest rates and heavy spending.
Alphabet, Meta and Oracle have issued or plan new bonds to fund AI infrastructure.
Institutional investors have urged Anthropic, which expects to spend nearly $900 billion on AI infrastructure in the coming years, to lower its IPO valuation target, The Wall Street Journal reports. Demand has also surged for options and credit-default swaps that protect against a downturn.
Written by AI from the articles below · updated Nov 3, 8:21 AM ET
Check the sources:
Article timeline
The articles in this story. Times are ET.
- Semafor · TechnologyNewsInvestors grow nervous over AI bubble as capex, debt and valuations climb
AIInvestors voice growing worry that the AI bubble will burst as Alphabet, Meta and Oracle issue or plan new bonds amid rising interest rates. Institutional investors have urged Anthropic, which expects to spend nearly $900 billion on AI infrastructure in the coming years, to lower its IPO valuation target, according to The Wall Street Journal. Demand has surged for options and credit-default swaps that protect against the bet.
Heat Trend
Not enough continuous observations to show a trend yet.