Fitch Warns AI Spending Reset Poses Credit Risk as Tech Firms Hold $182 Billion in Bonds

Fitch warned that a pullback in artificial intelligence infrastructure spending could trigger a broader global credit market downturn, pointing to $182 billion in investment-grade bonds recently issued by Amazon, Alphabet, Nvidia, Meta, Oracle and SpaceX. The agency highlighted that a sudden drop in debt-financed technology investment would break a feedback loop currently driving chip orders, data-center development and related supplier revenues.

The warning coincides with market data showing U.S. corporate bond issuance rose 26% in the first half of the year, while S&P 500 valuations approach dot-com era peaks. Information technology investment already added 1.4 percentage points to first-quarter GDP growth, and projected spending by four major tech companies stands at $700 billion, more than 75% above the prior year. Fitch cautioned that if corporate revenues do not materialize quickly enough to support the borrowing, bond investors would likely grow more cautious, reversing the expansion cycle.