S&P Warns of Potential Increase in AI Debt for Tech Companies

S&P Global has projected that six companies, including Amazon and Microsoft, will invest over $7 trillion in AI by 2030, warning that their AI-related debts may be greater than currently known. The complex financial structures make it difficult to ascertain the actual debt burden. Mark Habib of S&P explained that there are limitations in assessing real risks if companies do not disclose related debts or if credit rating agencies do not evaluate them. These companies are expected to make substantial investments in data centers and AI-related facilities from 2025 to 2030, with negative free cash flow anticipated by next year. The recent sharp drop in CoreWeave's bond prices and Oracle's credit rating downgrade have further highlighted these concerns. Habib stated that, for now, no additional credit rating adjustments are deemed necessary, but warned that if the scale of AI facility investments expands to an unsustainable level or if projected revenues do not materialize, credit rating assessments may change.

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