Investors have become more demanding when it comes to lending money to AI, accordingly WSJ. Hardest hit are companies like CoreWave, Nebius and Enscale, which borrow to build data centers and rent their computing power.
They were almost unable to sell bonds for several weeks, a great way for them to get money.
contrast. Two cases show how quickly things have changed:
- QTS. Six months ago, this data center operator was considering asking for $800 million. Now he is looking for almost the same loan, but it will cost 4 to 6 million more in interest per year.
- Corewave. At the beginning of the year he was able to sell the loan at 9.75% interest. Anyone buying these bonds today would need a return of more than 15%.
Why is it important?. No achievement, no team. that is not the party This means that data centers will take longer to come up. Hock Tan, Broadcom’s CEO, had already warned in October that money could be a bigger brake than a lack of chips or electricity. And that was it.
Nscale is actually already targeting it. It decided to delay its IPO in December because those who could finance its data centers for Anthropic were asking for tougher terms.
between the lines. No one can say we didn’t notice for a year. By the end of 2025, Deutsche Bank and Morgan Stanley were already looking for ways to protect themselves from the debt they owed to build the data center. Now that suspicion has reached the entire market.
Investors fear, according to the data WSJProtests around that delay jobs and AI benefits take longer than promised They also believe that they have already invested too much money in this sector.
- Having a great client isn’t enough either. QTS built a data center for Microsoft, and its debt tied to that project has gotten more expensive since April, when Microsoft just changed hands.
- The market already distinguishes between lending to Microsoft and lending to someone who rents a building to Microsoft.
Yes, but. It’s not like the money has run out either. As of September, AI companies had raised $466 billion in debt, more than four times the amount from a year earlier, according to Morgan Stanley. And chips remain in short supply: Broadcom’s CEO believes the problem won’t ease until 2028 or 2029. Other voices point to the 2030s.
So it’s not that money is lacking, what’s not in any case is cheap money, especially for those who don’t earn enough to pay for the work.
and what now. The president of EQT has been found semaphore A great term for a giant ad that never pays off: “Bragg Watts“. History.
Signing MW is very easy, connecting them, not so much; And now pay them, of course, even less.
Featured Image | Xataka with the Magnificent
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