🇬🇷 Greek, 28 October 2026, AI finance
AI and Public Debt: The Two Big Bets in Markets - The Risk of Double Crisis
Excessive expectations for AI and growing public debt pose significant risks to global markets.
The expansion of AI has created a unprecedented need for capital. Data centers, advanced processors, electricity, and digital infrastructure require investments made today, while a large part of the expected earnings is placed several years later.
The technological groups, which initially funded their development mainly from their operational cash flows, are increasingly turning to borrowing. Corporate bond issuances by the largest cloud providers exceeded $100 billion in 2025, while private credit capital participation is also increasing.
The shift creates a new risk. A technology can indeed transform the global economy, without all the businesses investing in it proving profitable. Technological success does not guarantee investment returns, especially when repayment obligations precede the creation of sufficient earnings.