Two factors are tempering expectations for future hyperscaler debt issuance after three tech names drove one of the busiest weeks in the market this year.
First, the tech-led equities rout this week is likely to curb the prospects of one name that’s been integrally linked to the artificial intelligence ecosystem — Anthropic.
Some $2.5trn in equity value got wiped from the stock market on Thursday (5 November), leaving investors questioning whether the AI lab’s lofty $1.5trn valuation could hold in an initial public offering this year or be scaled back, delayed or even withdrawn. How much cash Anthropic has on hand after a prospective equity raise will have implications on its sought-after investment grade ratings and whether or not the company can tap bond markets for even more cash.
Second, the sweep of Democratic victories in the midterm elections this week has tempered growth expectations for neoclouds and hyperscalers, as some newly-elected governors have promised more restrictions on data center projects which could slow the boom.
Still, a potential slowdown in the artificial intelligence expansion is more an equity story than a fixed income oneand it doesn’t spell the unwinding of the AI trade, several sources said. It’s...
