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Citadel Securities Sees a $500 Billion Chip Financing Debt Binge
['Caleb Mutua', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
(Bloomberg) -- The credit markets may have had their fill of record borrowing for data centers, but tech companies aren't done yet.
Citadel Securities LLC is forecasting another $500 billion-plus of debt in the public and private markets by 2028 to bankroll the chips that go inside the artificial intelligence campuses.
"This has the potential to become one of the largest new sectors in investment-grade credit," said Eason in an interview.
Since last year, the US market has digested roughly $60 billion of short-term debt with durations as long as five years from the hyperscalers.
Earlier this year, Anthropic clinched a roughly $35 billion financing package to purchase Google's custom TPU chips in one of the biggest private credit transactions in history.