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Moody's warns AI spending threatens Big Tech credit quality

Moody's warned that unprecedented AI spending was threatening the credit quality of Amazon, Meta, Alphabet and other large technology companies. The ratings agency said the investment was forcing even the world's most cash-rich corporations to lean heavily on debt, stock sales and off-balance-sheet moves to fund their expansion.

Why it matters

Credit-rating pressure could raise borrowing costs for the tech giants underwriting the AI boom, signaling that the spending race carries financial risk beyond equity valuations.

Sources

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