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BackNikkei: Asia's stock exchanges under pressure - tech companies are competing with countries for capital
Nikkei: Asia's stock exchanges under pressure - tech companies are competing with countries for capital
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Handelsblatt59 minutes agoBusiness1 min readGermanyView original

Nikkei: Asia's stock exchanges under pressure - tech companies are competing with countries for capital

kiowebonds

Quick Look

  • Big tech companies like SpaceX, Broadcom and Oracle plan to finance their AI upgrades through bonds, weighing on Asian stock markets.
  • The Nikkei index fell 0.9 percent, while the MSCI index of Asian stocks outside Japan fell 0.1 percent.
  • Experts warn of changing risk profiles due to increasing debt in the AI ​​sector.

AI-generated summary

Why It Matters

The AI ​​boom was initially financed with equity, but tech companies are increasingly turning to debt to increase their investments in artificial intelligence. This changes the financial risk profile of the industry.

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The AI ​​boom is increasingly being financed by the big tech companies through debt. That makes investors nervous. The Nikkei is giving way.

An electronic stock exchange board in Tokyo: The Nikkei is trading weaker. Photo: AFP

Sydney. The plans of major technology companies to take on billions of dollars in debt to upgrade their artificial intelligence (AI) sector weighed on Asian stock markets on Thursday.

Reports that SpaceX, Broadcom and Oracle, among others, want to tap the bond markets have fueled concerns about additional strain on the financial markets. These are already groaning under rising oil prices and high interest rates.

"Building AI started with cash. Increasingly it's running on credit, and credit is completely changing the risk profile," said Nigel Green, boss of deVere Group. “Debts must be repaid on schedule, regardless of whether the income flows or not.”

The Japanese Nikkei index fell 0.9 percent.

The broader MSCI index of Asian stocks outside Japan fell 0.1 percent.

More: Microsoft challenges Apple with new AI laptops for over 5,200 euros

rtr Published according to the editorial standards of the Handelsblatt. You can find more information in our guidelines.

What to Watch

AI outlook — possibilities, not facts

  • More technology companies will announce similar bond offerings for AI investments.

    Likely · Within weeks

Open Questions

  • What is the planned total debt amount of the companies mentioned for AI investments?
  • What specific bond conditions (term, interest) are offered?
  • How do other big tech companies like Apple or Google react to this financing strategy?

Related Topics

ki
PeopleNigel Green
OrganizationsSpaceXBroadcomOracledeVere Group
PlacesTokyoSydneyJapan
Topicsowebondsnikkeimscispacexbroadcom
This article was originally published by Handelsblatt.

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