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S&P warns of AI-era shadow lending market, says small firm risks are the real danger

S&P has warned that as big IT companies’ AI investment financing grows larger and more complex, their credit ratings could come under pressure, Axios reported. Amazon, Microsoft, Alphabet, Oracle, SpaceX and Meta are expected to spend more than $7 trillion by 2030 on data centres and AI capital expenditure. S&P analysts flagged rising uncertainty, reliance on debt and shadow lending that supports smaller, unproven firms.