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Pimco CEO warns of excessive debt risks for AI companies

The Motley Fool +1 · ·by G4L

CRWV CoreWeave Inc
$56.60 -6.86%
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  1. 1Pimco CEO Emmanuel Roman warned that AI companies risk borrowing too much money.
  2. 2The projected debt of AI companies over the next five years is 10 trillion, approaching the 12.1 trillion US corporate bond market size.
  3. 3Bond investors are showing caution as CoreWeave's corporate bond yield recently hit 15%.

So what's the key point?

There is a warning that artificial intelligence companies may borrow too much money in the future. Experts are concerned that the debt of these companies could grow to a size similar to the US corporate bond market.

Source The Motley Fool +1 · View original ↗

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