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Financing the AI boom: from cash flows to debt

Author

Listed:
  • Iñaki Aldasoro
  • Sebastian Doerr
  • Daniel Rees

Abstract

Investment related to artificial intelligence (AI) is surging – both in nominal amounts and as a share of GDP – and currently accounts for a substantial share of economic growth. The size of anticipated investment needs will require firms to shift the source of financing from operating cash flows to debt, with private credit playing a rapidly increasing role. While macroeconomic and financial stability risks from the AI boom appear moderate, the boom's sustainability hinges on AI firms meeting high earnings expectations. The fact that equity prices have run far ahead of debt market pricing underscores this tension.

Suggested Citation

  • Iñaki Aldasoro & Sebastian Doerr & Daniel Rees, 2026. "Financing the AI boom: from cash flows to debt," BIS Bulletins 120, Bank for International Settlements.
    • Handle: RePEc:bis:bisblt:120
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    References listed on IDEAS

    as
    1. Fernando Avalos & Sebastian Doerr & Gabor Pinter, 2025. "The global drivers of private credit," BIS Quarterly Review, Bank for International Settlements, March.
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