Mumbai, Sept. 17 -- The global artificial intelligence (AI) investment cycle is facing its first major macroeconomic test as rising US and Japanese bond yields increase funding costs for large technology investments, while uncertainty over AI monetisation continues to weigh on spending, Dolat Capital said in a report.

The brokerage said the current AI investment cycle is different from earlier technology cycles as major hyperscalers have moved from asset-light business models focused on returning cash to shareholders to large-scale capital spending.

These companies are increasingly funding AI investments through a combination of internal cash flows, debt and equity.

"The AI capex cycle is therefore entering its first meaningful macro t...