AI Financing Fuels Private Credit Growth and Risks

AI financing is expanding private credit as capital spending by major tech firms surges toward one trillion dollars. However a wave of upcoming loan maturities threatens weaker borrowers facing higher interest rates and growing leverage.

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FILE PHOTO: The words "AI Artificial Intelligence" and a keyboard are displayed in this illustration created on October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

Heavy borrowing to fund AI infrastructure is expanding private credit in the United States, reaching nearly $1 trillion by 2027. Moody's Ratings warned Tuesday that refinancing risks are rising for leveraged borrowers.