"It's 2026, and tech companies continue to insist they need to spend staggering amounts of money on AI data centers. Yet for all of its enthusiasm over the past few years, Wall Street is finally starting to squint at the numbers. According to new reporting by Business Insider, JPMorgan Chase is running into trouble finding investors interested in servicing billions in debt backing twoof the first five Stargate data centers."
"Stargate is Donald Trump's $500 billion AI project led by tech companies Oracle and OpenAI. Its vague goal, OpenAI has explained, is to "secure American leadership in AI," which will somehow "support the re-industrialization of the United States" and "provide a strategic capability to protect the national security of America and its allies." But if JPMorgan - which led financial lenders through a $38 billion Stargate debt raise - is already struggling to sell the vision, that all might be easier said than done."
JPMorgan Chase is struggling to find investors to service billions in debt for two of the first five Stargate AI data centers, even though those centers are reportedly fully financed. Banks and other investors are increasingly wary of additional exposure to large data center projects and may be approaching comfort limits on such deals. Stargate is a $500 billion AI initiative led by Oracle and OpenAI with stated aims to secure American AI leadership, support re-industrialization, and provide strategic national-security capability. S&P Global has flagged potential pressure on Oracle's credit rating below BBB, which would push Oracle toward junk status, raise borrowing costs, and make future financing more expensive and difficult, increasing project risk and prompting lenders to limit exposure.
Read at Futurism
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