Goldman Sachs Asset Management Underweights AI Hyperscalers

Goldman Sachs Asset Management has moved to an underweight position on hyperscalers, the largest corporate borrowers for artificial intelligence. The firm's decision stems from expectations of heavy supply in the corporate bond market rather than a lack of confidence in AI technology.

Lindsay Rosner, head of multi-sector fixed income investing at the firm, explained that major technology companies including Amazon.com Inc., Meta Platforms Inc., and Alphabet Inc. have borrowed hundreds of billions of dollars this year to finance AI initiatives. Rosner noted that new issuance is replacing existing debt and warned that continued borrowing could reprice the market.

Adding to the credit landscape, Moody's Ratings reported that hyperscalers have accumulated nearly $3 trillion in off-balance sheet obligations. This figure serves as a critical factor for analysts assessing the long-term creditworthiness of these technology giants as they continue to scale their AI infrastructure.