New Delhi, Oct. 15 -- The rapid expansion of private credit to finance artificial intelligence (AI) infrastructure could expose lenders to rising risks if expected returns from AI investments fail to materialise, Chamath Palihapitiya, CEO of 8090 and Social Capital, has warned.

In a post on X, Palihapitiya questioned whether the growing use of private credit to fund AI infrastructure could create a bubble, as technology companies increase spending on chips, data centres and other infrastructure.

"The AI buildout is increasingly funded by debt, and private credit is playing a much bigger role than it did even a year ago," he said, adding that Social Capital's research examined a key question: "Is private credit, which is funding a growin...