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Alchemy Capital Cautious on AI Capex as Hyperscalers Raise $240 Billion in Debt
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CNBC TV18•06-10-2026, 16:49
Alchemy Capital Cautious on AI Capex as Hyperscalers Raise $240 Billion in Debt
- •Alchemy Capital Management has adopted a cautious stance on the artificial intelligence investment cycle due to rising debt funding by hyperscalers.
- •Deputy CIO Alok Agarwal noted that the top five hyperscalers raised nearly $240 billion in debt in the first eight months of the year, more than double the prior full-year total.
- •While not yet at a danger point, investors are urged to monitor if operating cash flows can adequately support this massive debt accumulation.
- •Agarwal also highlighted emerging pricing pressures on Indian IT companies as the adoption of artificial intelligence accelerates.
Key Questions Answered
The top five hyperscalers raised close to $240 billion in debt in the first eight months of the year, which is more than double the previous full-year figure.
Alchemy Capital Management is growing more cautious because hyperscalers are increasingly relying on debt rather than operating cash flows to fund massive artificial intelligence infrastructure spending.
Deputy CIO Alok Agarwal flagged that Indian IT companies could face growing pricing pressure as artificial intelligence adoption continues to advance.
