Investors chase AI debt
Despite elevated market volatility, investors are buying debt tied to artificial‑intelligence companies as a way to maintain risk exposure while markets wobble. Commentators — including Goldman Sachs — warn that policy uncertainty and geopolitical shocks are likely to keep volatility high, so capital is becoming more selective rather than exiting risk entirely. (bloomberg.com) (businessinsider.com) (webanditnews.com)
Investors are still pouring money into debt tied to artificial-intelligence companies, even as wider markets swing on war, oil and inflation fears. (bloomberg.com) Bloomberg reported on April 11 that Wall Street had assembled tens of billions of dollars of financing for the artificial-intelligence buildout in recent weeks, with demand for exposure to the sector outweighing concern about the Middle East conflict and rising energy prices. (bloomberg.com) One big channel is convertible debt, which starts as a bond and can later turn into stock if the share price rises. Bloomberg reported on February 19 that 18 companies had raised nearly $13.6 billion from equity-linked securities through February 18, up more than 556% from the same point in 2025. (bloomberg.com) Another channel is asset-backed and private credit tied to the hardware behind artificial intelligence. Apollo said on January 7 that Apollo-managed funds led a $3.5 billion financing for Valor to support a $5.4 billion purchase and lease of Nvidia GB200 graphics processing units to an xAI subsidiary. (apollo.com) The appeal is straightforward: debt lets investors keep a claim on the artificial-intelligence boom without taking the full day-to-day swings of common stock. Mirabaud Asset Management said in its 2026 outlook that about half of the $45 billion of United States convertible issuance since August 2025 had been related to artificial intelligence. (mirabaud-am.com) That demand is arriving as Goldman Sachs says volatility is not likely to fade quickly. A Business Insider report published April 11 said Goldman’s macro strategists expect stock-market volatility to stay higher for longer because of policy uncertainty and shifting market structure, not only the Iran war. (businessinsider.com) Goldman Sachs Asset Management said on April 5 that the market impact of the Middle East conflict depends on the duration and severity of any energy disruption, but it still sees opportunities in both equities and fixed income. Goldman’s wealth unit said on April 7 that geopolitical risks, private-credit concerns and artificial intelligence remain key focus areas for investors entering the second quarter. (am.gs.com) (goldmansachs.com) Borrowers are still leaning in. CoreWeave said on April 9 that Meta expanded its artificial-intelligence infrastructure agreement to about $21 billion through December 2032, and Bloomberg reported the same day that CoreWeave also planned to sell $3 billion of convertible senior notes and $1.25 billion of senior notes. (coreweave.com) (bloomberg.com) Even some of the most leveraged names are trying to tidy up their balance sheets rather than retreat from borrowing altogether. Bloomberg reported on March 2 that about $17.5 billion of debt tied to X and xAI was set to be repaid in full, according to people familiar with the plan. (bloomberg.com) The result is a market that is not fleeing risk so much as repricing how to hold it. In April 2026, the money is still chasing artificial-intelligence exposure, but more of it is showing up in bonds, convertibles and infrastructure loans instead of plain equity. (bloomberg.com)
