Banks are pulling back as AI's massive debt pile disconnects from economic reality - Axios — SkimNews
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- Banks are pulling back from AI-related lending as the sector's massive debt pile disconnects from economic reality.
- Investors are dumping data center bonds as AI borrowers face a "Darwin moment," per the Financial Times, while higher rates hit what the Wall Street Journal called the riskiest corner of the AI trade.
Why it matters: The simultaneous retreat from both bank lending and bond markets — including an active selloff in data center bonds — shows AI financing is tightening across multiple channels at once, after weaker links surfaced in the sector's borrowing.
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