ðŸ‡ðŸ‡° English, 12 October 2026, AI funding
Investors Question Whether AI Revenues Can Keep Pace with Rising Borrowing Costs
Investors are demanding higher yields to fund massive borrowing for AI, according to an economist at AMP.
S&P 500 earnings are expected to have jumped by more than 30 percent in the third quarter, with the bulk of that coming from the tech sector.
The US investment-grade credit default swap index has risen sharply to its highest level since the Iran war began, indicating rising borrowing costs.
Investors are questioning whether AI revenues can keep pace with these rising borrowing costs, according to the economist at AMP.