Bloomberg Tech

Big Tech’s AI Debt Is Raising Investors’ Eyebrows

22 snips
Nov 24, 2025
Investors are worried about the heavy debt tech companies are accumulating to fund AI data centers. Bitcoin ETFs saw a massive $3.5 billion outflow recently, signaling investor anxiety in the crypto market. A new partnership between IonQ and Heven AeroTech aims to develop quantum-enabled drones, showcasing innovation in tech. Discussions also touch on NVIDIA's chip sales to China and the implications of AI on life sciences, with the potential for significant breakthroughs in drug discovery.
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INSIGHT

AI Build-Out Is Driving Heavy Corporate Debt

  • Big tech is taking on substantial debt to build AI data centers, which could stress credit markets if issuance overwhelms buyers.
  • The risk is not widespread defaults but tighter credit conditions and higher issuance costs for issuers.
ADVICE

Favor Cash Flow Over Momentum

  • Focus on companies with strong free cash flow and conservative valuations rather than momentum names to weather AI spending cycles.
  • Prefer businesses with durable cash flows over firms that chase rapid AI growth at any price.
INSIGHT

Quantum Moves Into The Air With Drones

  • Quantum technologies are being integrated across theaters: computing, networking, sensing, and now airborne drones.
  • IonQ aims to combine quantum sensors, networking, and computing to enable surveillance, navigation, and fleet coordination in drones.
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