Hyperscalers Shift Funding Toward Debt-Fueled AI Buildout

Hyperscalers are increasingly financing AI data center and compute expansion with debt as AI capex outpaces internal cashflows, market observers say. Microsoft has largely avoided this trend, while other cloud providers turn to bond markets and leverage; JPMorgan has launched a CDS-style basket to let investors hedge credit risk tied to the AI buildout. The move signals credit markets are pricing AI funding risk.