Hedge funds and superannuation funds are looking outside the artificial intelligence trade for investment opportunities amid concern about the growing reliance of technology companies on credit markets to fund their expansion plans.
Antipodes chief investment officer Jacob Mitchell warned the market had “reached the more difficult part of the AI cycle” as tech giants spent more cash on infrastructure than their businesses could generate, forcing a heavy reliance on borrowed money.
This article has been updated to correct the spelling of UniSuper senior portfolio manager Tommy Tam.
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