Apollo Economist Warns of $1 Trillion AI Funding Gap

Chief economist Torsten Slok of Apollo Global Management warns that the global artificial intelligence buildout may require more than $2 trillion in debt, potentially creating a $1 trillion funding gap. Slok reports that AI-related borrowing already represents over 40% of new long-term, investment-grade corporate debt. He suggests that concentration and ratings constraints may prevent traditional Wall Street bond markets from absorbing more than $1 trillion through 2030, leaving private credit lenders to fill the void using asset-backed financing tied to infrastructure and equipment.

Major technology firms are simultaneously increasing their capital expenditures. Amazon, Alphabet, Microsoft, and Meta project a combined $738 billion in spending this fiscal year, with Amazon leading at $220 billion, followed by Alphabet at $205 billion and Microsoft at $175 billion.

Further expanding the scale of investment, Nvidia and OpenAI are reportedly discussing a data center project near Columbus, Ohio. This specific venture could cost over $500 billion, while OpenAI is also considering chip purchases valued up to $350 billion.