Wall Street’s AI Debt Machine Is Starting to Choke on Supply

Takeaways by Bloomberg AI

A new anxiety is gripping Wall Street as it bankrolls the vast network of data centers and chips behind the artificial intelligence boom: Early signs suggest that the credit market is approaching the limits of how much more debt it can absorb.

One after another, yields are soaring into the double digits on bonds and loans funding the AI infrastructure buildout. Bankers are finding it more difficult to offload risk to insurers and other investors. Elon Musk himself warned the other day that hundreds of so-called neoclouds risk going under as firms get cut off from fresh financing.