Moody’s latest report indicates that artificial intelligence financing is driving the expansion of private credit beyond traditional corporate lending practices. Investment in AI infrastructure is growing rapidly, with the five largest U.S. hyperscalers and companies such as CoreWeave potentially spending up to $1 trillion by 2027. Markets are assessing the effect of this spending on borrower leverage and perceptions of bankruptcy risk, particularly regarding OpenAI. The ability of highly leveraged technology companies to refinance maturing loans will be a key factor in their future financial stability.
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