Trillions of dollars in borrowed money have powered the artificial intelligence boom. But now there is growing uncertainty around just how easily more money can be obtained – and how much of it will be paid back.
Those questions burst into the forefront last week when investors rapidly lost confidence in one debt-laden data centre company, CoreWeave. Prices of its bonds – the company has accrued US$72 billion (S$92.13 billion) in liabilities to operate 51 data centres – crashed, and investors placed a more than 60% likelihood that CoreWeave would fail to meet its obligations.
Source : https://www.straitstimes.com/business/weak-links-start-to-show-in-ai-borrowing
