US Tech Giants Ramp Up Euro-Denominated Bond Financing as Massive AI Capital Expenditures May Drive Up European Corporate Borrowing Costs

Morgan Stanley CEO Ted Pick forecasts that capital spending in the AI sector could reach $10 trillion to $15 trillion, warning that massive financing demands could crowd out non-AI companies’ access to capital. According to Reuters, some European firms have shifted to issuing shorter-term bonds to avoid supply pressures in the long-term bond market.