Lates News

Technology companies that need massive funding to pay for the ambition of artificial intelligence (AI) are achieving heavyweight debt financing transactions at the fastest pace in recent years, using investors' insatiable interest to secure financing even though there is no guarantee that the related investment projects will ultimately pay off. Borrowers are tapping into various credit financing channels to find willing buyers. Bloomberg compiled data shows that tech companies in the United States have raised approximately $157 billion in funds so far this year in the public bond market, an increase of about 70% compared to the same period last year. Oracle led the pack with the sale of nearly $26 billion in public trading bonds, most of which came from a large bond issuance on Wednesday. The company is preparing to spend billions of dollars to rent data centers equipped with NVIDIA chips and then provide them to artificial intelligence customers like OpenAI. "This is the latest sign that the AI investment frenzy, which has long been a focus of the stock market, is spilling over into the credit domain," wrote Jonathan Owen, a member of TwentyFour Asset Management's investment-grade portfolio management team, in a letter to investors on Thursday.