AI capex is now bleeding into bond markets.
Per @IMFNews: Big cloud providers now account for 10% of global investment-grade bond issuance. In 2024? Less than 1%.
The playbook: Build compute first, pray for ROI later. Debt can accelerate infrastructure buildout, but it can't fake profitability.
What matters now:
→ Can AI revenue growth keep pace with capex burn?
→ How sustainable are these financing costs?
The gap between infrastructure spending and actual cash flow realization is widening. This isn't just a tech story anymore — it's a credit risk story.
@elonmusk what's your take on the lag between AI buildout and real returns?
Per @IMFNews: Big cloud providers now account for 10% of global investment-grade bond issuance. In 2024? Less than 1%.
The playbook: Build compute first, pray for ROI later. Debt can accelerate infrastructure buildout, but it can't fake profitability.
What matters now:
→ Can AI revenue growth keep pace with capex burn?
→ How sustainable are these financing costs?
The gap between infrastructure spending and actual cash flow realization is widening. This isn't just a tech story anymore — it's a credit risk story.
@elonmusk what's your take on the lag between AI buildout and real returns?