US tech firms may crowd out others in euro bond market and raise credit risk

FRANKFURT, Sept 2 : U.S. tech giants are flooding the euro zone bond market to fund huge AI investments, potentially crowding out other borrowers, pushing up financing costs even for governments and raising credit risks, according to a European Central Bank blog post.Tech firms such as Google, Amazon and Microsoft, often referred to as hyperscalers, could spend as much as $1 trillion on AI-related investments by 2028, credit analysts say, forcing them to tap debt markets around the world.The firms have about €40 billion ($46 billion) of bonds outstanding in the euro zone, a relatively small share of the market, but account for nearly 10 per cent of gross new issuance. Amazon and Alphabet have been the largest corporate issuers in the euro zone bond market this year."U.S. big tech companies