New data from Bank for International Settlements (BIS) shows something interesting: the companies driving AI infrastructure (Alphabet, Amazon, Meta, Microsoft, Oracle) have historically run lean on debt. They funded growth from cash flow.
That's changing. Capex is now outpacing free cash flow. They're borrowing.
Private credit to AI firms went from near-zero to $200B. By 2030, it could hit $600B.
Source: https://www.bis.org/publ/bisbull120.pdf