“Better hope the Fed is on board because going back to Mr. Andrea Mitchell, they like to raise interest rates to cut off high growth just like it was done in the first Trump administration.”
While some of the AI investment is financed through bonds, over half is pure profit off the top for the big 5.
Cash money. 0% interest with potential of multiple 10s of percent profit.
You already gave your share of money.
Did I mention these companies are wallerin’ in money?
And they’re investing it.
And they are laying employees off like crazy...
Cash money. interest with potential of multiple 10s of percent profit.
Did I mention these companies are wallerin’ in money?
And they’re investing it.
AI data center infrastructure is wallerin' in debt..
https://economictimes.indiatimes.com/news/international/us/data-center-debt-skyrockets-112-25-billion-issued-as-ai-boom-fuels-borrowing-frenzy/articleshow/125228221.cms#google_vignette
Data center debt skyrockets 112% — $25 billion issued as AI boom fuels borrowing frenzy
10 November, 2025
Data center debt has exploded due to the AI boom, with $25.4 billion in US secured debt issued in 2025 alone, marking a 112% increase from 2024's $12 billion. Since 2022, this issuance has grown by an astonishing 1,854%. This surge is driven by the massive capital requirements of AI infrastructure, as hyperscale data centers with advanced GPUs demand billions in upfront investment for power, cooling, and networking.
Major tech companies like Meta, Oracle, and Alphabet have borrowed heavily, issuing $75 billion in bonds and loans in just September and October 2025—more than double the sector's annual average from 2015 to 2024. Industry-wide, data center asset-backed securities and commercial mortgage-backed securities total about $49 billion outstanding. Morgan Stanley projects that AI-related data center spending will reach $2.9 trillion cumulatively from 2025 to 2028, with roughly half requiring external financing.
The pace of capital expenditures in AI data centers now stretches the limits of what company cash flows can support; in 2025 and 2026, AI capex is expected to consume up to 94% of operating cash flow minus dividends and buybacks, up from 76% in 2024, forcing companies to increasingly rely on debt markets.
We can see down the road a bit...everybody 'invested' in data centers gets hosed, OR - - - - - - - government bailout for the big guys.
The administration has categorized AI as a national security issue, teeing up the perfect rationale for a 'taxpayer-financed government bailout' - after the SHTF.