AI credit expansion: Assessing the micro and macro Risks

• AI is fuelling a new, debt-driven investment cycle: Even as hyperscalers start from a position of strong balance sheets, rising capital spending and falling free cash flow signal a shift toward leverage. • Big questions are still unresolved: Investors face wide-ranging potential outcomes and layered risks as demand, value creation, and returns across the AI ecosystem remain uncertain, making selection and structure critical. • History offers a cautionary guide, if not a perfect template: Past infrastructure booms – from railroads to telecom – show that transformational technologies can still...