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The constraint that shapes AI debt financing is capital intensity.
AI infrastructure carries large upfront costs and payback periods that extend well beyond conventional credit cycles, and the timing gap between capital deployment and revenue generation is the core underwriting problem.
Morgan Stanley has become Wall Street's top bank for AI debt deals, with Big Tech-backed financing cutting borrowing costs for AI borrowers while deepening the industry's exposure to the companies providing that backing.
How Big Tech backing reshapes the credit stack Purpose-built AI infrastructure presents a narrower collateral base than general-purpose technology assets.
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