Bond market anxiety is growing over AI capex budgets

Investors are getting increasingly uncomfortable with the amount of capital needed to make the artificial intelligence buildout a reality. It's playing out in real time in the bond market, where the biggest names involved in the blitz, Google, Amazon and Meta, are seeing credit spreads widen as fixed-income investors demand more reward to lend to the companies. Yields ticked higher this week after Alphabet lifted its capex forecast, raising concerns that other hyperscalers could follow suit. Part of the reason capex budgets are going up is the rising cost of power.