Tech Debt Crisis Looms as Bond Investors Retreat From AI Infrastructure Financing

Credit markets are turning hostile to the artificial intelligence boom as investors grow skeptical of the massive data-center buildout that underpins it. Following six months of struggling to distribute debt, banks including JPMorgan Chase, Morgan Stanley, SMBC, and MUFG are now executing significant "risk transfers" to offload AI infrastructure loans they recently underwrote, signaling they have hit internal exposure limits that the scale of this financing cycle has exceeded.