Moody's says 'unprecedented' AI spending threatens credit quality of Amazon, Meta, Alphabet and others

Moody's reported that artificial intelligence spending is forcing major technology corporations including Amazon, Meta, and Alphabet to increase their reliance on debt and equity financing. The rating agency said companies are using off-balance-sheet arrangements to fund AI investments. Moody's noted that AI capital expenditures are straining the credit quality of even highly profitable corporations with substantial cash reserves.

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