Credit Fuels the AI Boom — and Fears of a Bubble
Credit investors are funneling billions into artificial intelligence infrastructure, even as industry leaders warn of potential overextension. JPMorgan and Mitsubishi UFJ spearhead a $22 billion loan for Vantage Data Centers' expansion, while Meta secures $29 billion from PIMCO and Blue Owl Capital for a Louisiana data hub. OpenAI CEO Sam Altman forecasts trillion-dollar infrastructure needs—and inevitable investor pain.
The financing surge mirrors dot-com era exuberance, with lenders betting on AI's transformative potential. Yet skeptics note parallels to past tech bubbles, where credit-fueled growth preceded sharp corrections. Data center deals now dominate private credit markets, absorbing capital that once flowed into commercial real estate and Leveraged buyouts.
