An anonymous seller is auctioning a roughly $500 million portfolio of data center loans, including debt tied to OpenAI, SoftBank, and Oracle’s Stargate project in New Mexico. The sale also includes loans for Vantage Data Centers and CyrusOne, with bids due Nov. 19. The auction reflects growing skepticism about the AI buildout following the US midterm elections, especially after the Democratic governor-elect in Texas called for a moratorium on new construction.
The Nasdaq 100 fell as much as 6.4%, and junk bonds linked to data center developers like CoreWeave and Galaxy Digital dropped sharply. Wall Street is grappling with whether the credit market can sustain the surge in AI-related debt, as firms like Goldman Sachs and Apollo face losses on large chip financing deals.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing