Huan Qiu Shi Bao·2025-11-19 22:44Core Viewpoint - The competition among U.S. tech giants for artificial intelligence (AI) dominance has intensified, leading to a surge in debt financing for data center construction, raising investor concerns about the sustainability of this trend [1][4]. Group 1: Debt Financing Trends - Amazon launched its first dollar bond issuance in three years, raising $15 billion, exceeding its initial target by $3 billion [3]. - Other tech companies are also heavily issuing bonds, with Alphabet raising approximately $17.5 billion in the U.S. and €7.5 billion in Europe, while Meta raised $30 billion in late October [3]. - Oracle plans to issue $38 billion in bonds to fund its AI infrastructure projects, contributing to a total of over $200 billion in corporate bonds issued by U.S. companies this year for AI-related infrastructure [3][4]. Group 2: Market Expectations and Concerns - Analysts estimate that global data center spending will reach nearly $3 trillion by 2028, with $1.4 trillion covered by cash flow from large U.S. tech companies, leaving a $1.5 trillion funding gap to be filled by other sources [4]. - The optimistic market outlook for AI revenue anticipates growth from $45 billion last year to $1 trillion by 2028, driven by demand from enterprises, public sectors, and individuals [4]. - Despite the robust cash flow and credit status of leading tech companies, doubts remain about the commercial viability of AI applications and the sustainability of investments in the sector [4]. Group 3: Risks and Market Reactions - If AI technologies fail to deliver expected returns in the coming years, heavily indebted companies may face significant losses, potentially impacting the broader economy [5]. - The current trend of shifting towards debt financing is reminiscent of the late 1990s internet bubble, raising concerns about the repayment of substantial debts incurred by tech companies [6]. - Recent market reactions include a sell-off in AI stocks, with Oracle's 30-year bonds dropping about 8% since their peak, indicating growing investor unease regarding the debt accumulation for AI infrastructure [6].