Bloomberg Businessweek Blackstone Bet on Chips Drove a Debt Boom That’s Upending Credit
8 snips
Oct 23, 2026 
Dina Bass, Bloomberg reporter covering AI infrastructure, examines Blackstone’s pioneering chip-backed loans, the race to build AI data centers, and the risks of obsolete GPUs and mounting debt. Cybersecurity leader Jay Chaudhry discusses AI-powered threats. Tax scholar Ray Madoff explores billionaire tax strategies, while wine writer Jessica Dupuy uncorks Italy’s regional traditions and producers.
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AI Chips Are Creating A Trillion-Dollar Debt Market
- AI infrastructure is creating a new credit market because unrated companies need financing for chips that cost more than their data centers.
- Chip-backed SPV lending grew from Blackstone’s roughly $2 billion CoreWeave deal in 2023 toward a projected $1 trillion market.
AI Debt Depends On Chips Staying Valuable
- AI debt carries risks from uncertain chip lifespans, energy constraints, technological obsolescence, and whether customers can turn demand into profits.
- Heavy borrowing may crowd credit markets and raise financing costs beyond the AI sector.
Trading Firms Build AI Centers For Milliseconds
- Market makers and high-frequency traders are building specialized data centers because tiny speed advantages can materially improve trading returns.
- Jane Street, Hudson River Trading, and Citadel Securities are testing chips and investing in startups such as Etched and Positron.
