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Strategies & Market Trends : World Outlook

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To: Les H who wrote (48929)	11/17/2025 7:45:39 AM
From: Les H	Read Replies (1) of 50627

Yet More AI Bubble Worries, Now on Debt Side, with Wall Street Journal Featuring AI Datacenter Borrowing “Frenzy” Posted on November 17, 2025 by Yves Smith Yours truly is overdue on an overview how private-debt-backed AI datacenter deals work and why companies like Meta who are perfectly capable of borrowing in their own name paying 200-300% basis points extra not to do so is not a good sign. But the Wall Street Journal just published a very detailed story on the general outlines of this debt binge, which has gotten more attention in the popular press as borrowing levels have skyrocketed this year: Yet More AI Bubble Worries, Now on Debt Side, with Wall Street Journal Featuring AI Datacenter Borrowing "Frenzy" \| naked capitalism I would also count the "investments" into OpenAI and other AI software companies to build data centers as Big Tech capital expenditures. Not only does it keep capital expenditures off the Big Techs' financial statements, but it pushes the future depreciation hits onto the software vendors. Lucent, Cisco, and the networkers had to report discounts to their recorded revenues in future years.

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