The surge in debt issuance to finance the artificial intelligence buildout is beginning to test investor appetite, with large bond buyers demanding higher yields as technology companies flood the market with new supply.
Investors remain broadly comfortable with the credit quality of major technology companies such as Amazon and Alphabet, but the sheer volume of borrowing is forcing issuers to offer greater compensation. Reuters reported that the shift has raised concerns over whether demand could weaken if AI-related spending and borrowing continue to accelerate.
