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      Billionaire Grant Cardone: Tech giants issued US$66 billion in high-yield debt to seize the AI market; yields will fall if expectations miss

      PANews, October 4 – American billionaire and well-known investor Grant Cardone pointed out that, driven by competition in the artificial intelligence sector, tech giants such as Meta, Google, and Amazon are raising funds through the issuance of high-yield (junk) bonds to sustain R&D spending. Around US$66 billion of such bonds have been sold globally to date, with coupon rates as high as 9.75%. Cardone analyzed that these tech companies believe they must invest in AI at all costs to survive, but if subsequent execution falls short of expectations, yields on the related bonds will decline.


      Source: PANews
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