capex spending

Investors are growing wary of the massive capital required for AI expansion, pushing up credit spreads for tech giants like Alphabet, Amazon, and Meta. Rising energy costs and volatile treasury yields add to concerns, as hyperscalers’ capital expenditures may soon outpace free cash flow. Oracle’s credit default swap hitting multi-year highs reflects this AI-related debt anxiety, while even strong players like Meta face higher borrowing costs for new projects.