The Yield on AI Dreams The recent surge in 10 year Treasury yields has sent ripples through the tech world, warning of a potential dent in companies' ambitious plans for artificial intelligence (AI) investments.
At the heart of this concern is debt fueled AI capex: how will companies continue to fund their AI endeavors if borrowing becomes more expensive?
China's AI industry, which has fueled its growth with generous amounts of debt, may be particularly vulnerable to rising yields.