Bond investors are starting to say ‘anything but tech.’ What that means for the AI boom.

Investors in corporate bonds are showing a growing preference to avoid technology-sector debt, a shift that matters because the AI buildout has been financed heavily through borrowing. As scrutiny of the capital-spending boom increases, AI-related financing has become harder and more expensive to come by, according to the report. In practical terms, when bond buyers demand higher yields or step back from tech issuers, the cost of funding data centers, chips and related infrastructure rises for the companies doing the spending.

The development is a reminder that the AI investment cycle depends not only on demand for computing but also on the willingness of credit markets to supply capital at reasonable terms. Watch for changes in borrowing costs for large technology issuers and for whether spending plans are adjusted in response to tighter financing conditions. Neither would necessarily end the boom, but both could influence its pace and who can afford to participate.