Scott Bessent says neocloud debt isn't problematic at all
Source: Business Insider ·
Treasury Secretary Scott Bessent said AI-related debt was contained to a small part of the AI ecosystem, and he wasn't concerned..
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Scott Bessent isn't losing sleep over neocloud debt.Anna Moneymaker/Getty ImagesTreasury Secretary Scott Bessent isn't rattled by the neocloud debt debate that has spooked investors.He said AI-related debt isn't "problematic at all" and just a small part of the AI ecosystem.Neocloud stocks have slumped amid concerns over mounting debt and uncertain AI investment returns.Treasury Secretary Scott Bessent weighed in on the neocloud debt debate that recently rattled the AI trade, and he doesn't seem too concerned.In a CNBC interview Wednesday, Bessent was asked about yields on some AI-related debt climbing into the double digits. The secretary replied, "We monitor all of this.""I don't think it's problematic at all, because we're seeing that that's the neoclouds are a small component of the overall ecosystem," Bessent added.He said financing was still getting done, as were deals, and pointed to companies like Meta choosing to finance with equity.The neocloud industry, which includes…