It is estimated that U.S. artificial intelligence (AI) companies have issued more than $200 billion ..

It is estimated that U.S. artificial intelligence (AI) companies have issued more than $200 billion (about 286.14 trillion won) in bonds to raise funds related to infrastructure construction such as large-scale data centers. There are concerns that if bonds are oversupplied to the financial market and the profitability of AI technology companies is not guaranteed, it will act as a new debt risk.

The Financial Times (FT) on the 1st (local time) pointed out that AI technology companies are relying on the bond market to cover the cost of building new data centers. This is because it is not known how long it will take for these companies to generate profits.

Demand for AI bonds is still high in the market. Meta, the parent company of Facebook and Instagram, is seeking to raise 30 billion dollars (about 43 trillion won) by issuing bonds. The bond issuance, organized by Citigroup and Morgan Stanley, is said to have attracted orders of $125 billion (about 179 trillion won).

Bloomberg analyzed, “The largest demand for subscriptions in the history of public corporate bond issuance has been concentrated.”

Oracle, another technology company, also issued $18 billion (about 25 trillion won) worth of bonds in September. The move comes as data center costs have increased as it has signed a five-year cloud infrastructure contract worth $300 billion (about 416 trillion won) with customers such as OpenAI and Meta.

Demand for Oracle bond purchases also reached $88 billion (about 125 trillion won), flooding oversubscribed orders. Alphabet, Google’s parent company, also issued 5 billion dollars worth of corporate bonds in the first half of this year.

It is analyzed that the size of corporate bond issuance by AI technology companies has increased significantly this year. According to Goldman Sachs, corporate bond sales of Meta, Alphabet, and Oracle reached $180 billion, accounting for more than a quarter of the net supply of U.S. corporate bonds this year.

The market predicted that the demand for bonds from AI technology companies with high credit ratings will decrease as the demand for bonds increases.

In the case of AI, it is predicted that more funds will be needed to establish and operate data centers while demanding enormous technology investment.

As the size of corporate bonds of AI technology companies grows, some warn that if the “AI bubble” becomes a reality, it could turn into a systemic risk. It is pointed out that if hundreds of billions of dollars of financial market funds are concentrated on AI corporate bonds that may not make profits in the market, insolvency risks could spread throughout the financial market.