Goldman Sachs data shows hyperscalers doubled leverage ratios to 1.8x as AI spending outpaces cash generation amid $5.8 trillion projected capex.
The six largest AI infrastructure spenders issued $244 billion in bonds this year, 14 times 2024 levels, to fund data centers and computing resources. The surge in debt financing coincides with a doubling of leverage ratios to 1.8x among hyperscalers in six months.
Projected AI capital expenditures through 2030 stand at $5.8 trillion, reshaping balance sheets as firms race to secure scarce resources. Credit default swap spreads have widened, reflecting investor skepticism over near-term returns on AI investments.
Markets are shifting focus from enthusiasm to accountability, demanding proof that debt-fueled spending will yield sustainable cash flows. The trend signals growing caution amid rapid borrowing acceleration.