Nvidia Backs OpenAI with $105 Billion AI Debt-Fueled Spree

Nvidia has agreed to provide up to $105 billion in backing for OpenAI's new data center in Ohio, as the tech industry continues its spending spree on artificial intelligence.

The deal is part of a growing trend of debt-fueled investment in AI, with many companies taking on large amounts of debt to fund their research and development efforts.

Morgan Stanley analysts have noted that much of this debt is held off balance sheets, making it difficult for investors to assess the total potential leverage of these companies.

The European Central Bank has warned that this spending spree could lead to a 'reverse-crowding-out effect', where private borrowing makes government debt more expensive and sends US bond yields higher.