New Delhi, July 24 -- The rapid expansion of artificial intelligence (AI) infrastructure is entering a new phase as investors begin to focus on rising credit risks linked to massive spending by major US technology companies, according to a Jefferies report, which said hyperscalers are increasingly relying on debt to finance AI investments while questions over future returns are beginning to intensify.

The report said the upcoming earnings season for Microsoft, Amazon and Meta will keep AI capital expenditure under close scrutiny after Alphabet recently increased its 2026 capital expenditure guidance by another USD 15 billion to USD 195-205 billion. Combined capital expenditure by the four major hyperscalers is estimated at about USD 695 ...