The money is running out

OpenAI cut its latest funding round target to twenty billion dollars from thirty billion, securing only about eleven billion in commitments, less than half its original goal.

Credit markets are tightening

S&P Global cut Meta's credit outlook to negative from stable, citing negative cash flow and uncertainty around capital expenditure plans. A European bank said it is approaching lending limits to the sector.

Spending plans stay massive

A handful of hyperscalers are expected to invest eight hundred billion dollars this year and more than one trillion dollars next year, sending their stocks tumbling.

The math does not add up

Gartner estimated data center owners need eight point five trillion dollars in cumulative revenue by the end of the decade to justify investments. They are expected to generate only three point six trillion dollars.

Tech leaders sound the alarm

Broadcom CEO Hock Tan warned capital could become the biggest constraint on AI. BlackRock CEO Larry Fink said competition for capital was the fiercest he had witnessed in his career.

“Does enough capital even exist to finance everyone's ambitious AI spending plans?”

Companies race to raise funds

Oracle plans to raise twenty billion dollars by issuing stocks and bonds. SpaceX closed forty billion dollars in debt financing, Meta announced plans to raise ninety five billion dollars in equity, and Microsoft raised twenty…