Moody's Chief Economist Sounds Alarm On AI Over-Investment, Soaring Debt — Says Risks Could Hit Credit Markets, Not Just Investors
Optimistic
21.5
As the race for artificial intelligence (AI) dominance accelerates, Moody's Analytics Chief Economist Mark Zandi is sounding the alarm on a growing financial risk that sets the current tech boom apart from the dot-com era: massive corporate debt.
AI ‘Over-Investment’ And Soaring Debt
In a stark warning issued via X on Sunday, Zandi highlighted that bond issuance by the top 10 AI companies is projected to hit a record $120 billion this year, creating a leverage problem that could inflict broader economic damage than previous market corrections.
While acknowledging that AI holds the potential to “significantly boost productivity” and lift living standards in the long term, Zandi cautioned that the interim period is fraught with peril.
He pointed to “soaring AI stock prices” that already disc
AI ‘Over-Investment’ And Soaring Debt
In a stark warning issued via X on Sunday, Zandi highlighted that bond issuance by the top 10 AI companies is projected to hit a record $120 billion this year, creating a leverage problem that could inflict broader economic damage than previous market corrections.
While acknowledging that AI holds the potential to “significantly boost productivity” and lift living standards in the long term, Zandi cautioned that the interim period is fraught with peril.
He pointed to “soaring AI stock prices” that already disc
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This analysis was generated using Pulse AI, Glideslope's proprietary AI engine designed to interpret market sentiment and economic signals. Results are for informational purposes only and do not constitute financial advice.
