An AI label alone no longer wins lenders, JPMorgan says
Source: CoinDesk ·
From the source
As default insurance on several AI-linked firms hits record costs, companies must show they can finance investment, service the debt and eventually mint cash, JPMorgan says. An AI label alone doesn't secure funding as lenders now weigh a firm’s business and financial viability, according to JPMorgan. “The AI label alone is no longer enough to reassure lenders. Companies must show that they can finance investment, service their debt and eventually turn spending into cash flow,” Justin Biemann, global investment strategist at J.P. Morgan Private Bank, said in a report published Oct. 23. Elon Musk issued a similar warning on Sunday, saying debt funding is drying up for AI neoclouds, firms whose revenue depends almost entirely on data centers. That matters for crypto. AI has been one of the most potent narratives driving risk-taking across financial markets, bitcoin included. Bitcoin and Nvidia both bottomed within weeks of ChatGPT’s debut in late 2022 and have rallied significantly…