Big Tech is borrowing like never before and the Fed just made that a lot more expensive
Summary
The article analyzes how Big Tech is increasingly funding AI infrastructure through debt markets, highlighting Nvidia's $25 billion bond sale and projected AI-linked debt issuance. It discusses the impact of Federal Reserve policy on financing terms, the widening credit spreads, and the ongoing cycle of cloud providers borrowing to build data centers and purchase chips, with risks if demand or energy constraints slow adoption.