Financing AI becomes more expensive for large companies, Christophe Barraud warns

Financing AI becomes more expensive for large companies, Christophe Barraud warns
Bond costs rise for AI leaders

Christophe Barraud, head of discretionary management and research at LIOR Global Partners, highlights a notable trend in the bond market, observing that financing for the artificial intelligence race is becoming more expensive, even for the most powerful companies worldwide.

Barraud points to the G-spread on a basket of bonds issued by hyperscalers, which has climbed to approximately 148 basis points, suggesting investors now demand higher premiums.

Barraud recently noted heightened market attention to U.S. inflation readings as investors weighed the likelihood of a Federal Reserve rate hike, according to a previous report. He also reported that Samsung and SK Hynix are preparing for major capital outlays in artificial intelligence projects, as detailed in an earlier update. Both themes reflect rising costs and investment activity tied to the growth of AI.

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