Is the AI boom turning into a debt bubble? And could the enormous cost of financing artificial intelligence infrastructure become the next major risk for global financial markets?
In this episode of Talk Money To Me, Felicity and Candice explore the growing financial risks behind the artificial intelligence investment boom and examine why credit markets are beginning to send some important warning signals.
While investors have focused on the extraordinary growth potential of AI, semiconductors and data centres, another story is emerging beneath the surface: the billions of dollars of debt being used to finance this technological revolution.
Drawing on UBS Global Research's October 2026 report, The AI Debt Financing Monitor: Funding Costs Rise, Fault Lines Emerge, we unpack what is happening across global credit markets, why borrowing costs are increasing and what this could mean for investors heading into 2027.
In this episode, we explore:
We also identify the five key indicators investors should monitor as we head into 2027, including hyperscaler capital expenditure, credit spreads, funding costs, data centre utilisation and free cash flow.
Our key takeaway? We remain constructive on the long-term AI investment opportunity, but believe the market is entering a more disciplined phase. The focus is shifting from who can grow the fastest to who can generate sustainable earnings, manage debt and deliver attractive returns on invested capital.
Because being right about the future of artificial intelligence doesn't necessarily mean every AI investment will make money.
Join Felicity and Candice as they unpack the opportunities, risks and potential fault lines emerging behind one of the biggest investment themes of our generation.
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DISCLAIMER: This podcast is general in nature and for educational and informational purposes only. It does not constitute personal financial advice. Always consider your individual circumstances and seek advice from a qualified financial adviser before making investment decisions.
Recorded: 26 October 2026
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