AI investment boom faces growing credit risks as hyperscalers ramp up debt: Jefferies

Jefferies strategist Chris Wood warns that the AI infrastructure boom could trigger massive capital destruction as cheaper Chinese open-source models challenge US dominance. With hyperscalers set to spend nearly $1.6 trillion over two years, investors are increasingly…

Investors are now scrutinising massive artificial intelligence infrastructure spending by major tech companies. Hyperscalers are increasingly relying on debt to finance these significant AI investments. Upcoming earnings reports will keep AI capital expenditure under close…