Uploaded August 2026 | Updated September 2026, 3 weeks ago
You might be funding the AI boom through your annuity, and nobody
asked you.
How we're taking advantage of news like this is inside
skool.com/coinpicksgenesis, link in my bio, a dollar a month.
For two years big tech paid for AI out of pocket. Real cash from real
profits. That is over. Five American companies are on track to spend
roughly $700 billion this year on AI infrastructure, and Goldman
points out they are running close to 100 percent of the cash their
operations generate. Every dollar the business makes, plus borrowing
for the rest.
Morgan Stanley expects about $570 billion of AI related debt issued
this year. Nearly $236 billion had already sold by May 31. Four times
last year's pace.
Now ask who buys it. The natural buyers of long dated private bonds
are life insurance companies, because they owe retirees money decades
from now and need long paper to match it. So retirement money is
helping pay for graphics cards.
A lot of this financing is not on public balance sheets anymore. Side
vehicles, private placements, asset backed deals. You cannot open a
filing and see who is holding the risk. In Bank of America's July
survey, 48 percent of global fund managers named AI spending as the
most likely source of the next systemic credit event, ahead of private
credit at 34.
Here is the asymmetry. Stock investors signed up for volatility and
they get the upside if it works. Bondholders get a fixed coupon and
all of the downside. Risk moved from people who wanted it to people
who never volunteered.
Follow for the moves the news skips.
You might be funding the AI boom through your annuity, and nobody
asked you.
How we're taking advantage of news like this is inside
skool.com/coinpicksgenesis, link in my bio, a dollar a month.
For two years big tech paid for AI out of pocket. Real cash from real
profits. That is over. Five American companies are on track to spend
roughly $700 billion this year on AI infrastructure, and Goldman
points out they are running close to 100 percent of the cash their
operations generate. Every dollar the business makes, plus borrowing
for the rest.
Morgan Stanley expects about $570 billion of AI related debt issued
this year. Nearly $236 billion had already sold by May 31. Four times
last year's pace.
Now ask who buys it. The natural buyers of long dated private bonds
are life insurance companies, because they owe retirees money decades
from now and need long paper to match it. So retirement money is
helping pay for graphics cards.
A lot of this financing is not on public balance sheets anymore. Side
vehicles, private placements, asset backed deals. You cannot open a
filing and see who is holding the risk. In Bank of America's July
survey, 48 percent of global fund managers named AI spending as the
most likely source of the next systemic credit event, ahead of private
credit at 34.
Here is the asymmetry. Stock investors signed up for volatility and
they get the upside if it works. Bondholders get a fixed coupon and
all of the downside. Risk moved from people who wanted it to people
who never volunteered.
Follow for the moves the news skips.
