The AI-driven boom will ease up at some point in the future but not yet, Diameter Capital Partners co-founder and Managing Partner Scott Goodwin said at the Bloomberg Global Credit Forum on Wednesday.
Goodwin cited Alphabet Inc.’s move this week to first raise a record $80 billion in equity and then increase that to $85 billion as a prime example of the enormous demand for capital to fuel artificial intelligence and the infrastructure to support it. Alphabet, along with Meta Platforms Inc., Microsoft Corp. and Amazon.com Inc., are expected to rack up combined capital expenditures of more than $500 billion this year to accelerate AI.