AI investment, government borrowing and rising global capital costs
The Economic Times, citing Goldman Sachs, reports that AI infrastructure spending and increased government borrowing are pushing funding costs higher worldwide.
TLDR
The Economic Times reports that Goldman Sachs links rising global capital costs to companies borrowing more for AI infrastructure and governments adding debt for infrastructure, energy security and defence. The bank warns that higher funding costs could weigh on equities if earnings growth slows. It also says AI-related borrowers are driving a growing share of bond issuance.
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