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Moody's warns AI spending could weaken credit quality at big tech

Moody's said even highly cash-rich firms may rely more on debt, stock sales, and off-balance-sheet moves to fund AI spending.

Reported · Written up by our desk · Fund Industry

Moody's is warning that AI investment levels are creating unusual strains on corporate credit profiles, CNBC Finance reported.

In its view, the scale of AI spending is forcing large, cash-rich technology companies to finance growth more heavily through external capital rather than internal resources.

Moody's said that could include taking on more debt, raising funds through stock sales, and using off-balance-sheet strategies, moves that may pressure credit quality, according to CNBC Finance.

CNBC Finance said Moody's pointed to major AI-related spenders including Amazon, Meta, and Alphabet as examples of companies facing the heightened credit risk.

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