DoubleLine wary of AI funding wave that could alter US high-grade debt market

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK (Reuters) -A rush of bond sales by major tech firms to fund artificial intelligence expansion is creating a high-stakes bet for the $9 trillion U.S. corporate bond market, prompting caution from prominent investors like DoubleLine over the sector's growing debt load.

Over the past two months, four major cloud and AI "hyperscalers" have sold nearly $90 billion in public bonds. Googleowner Alphabet sold $25 billion in bonds, Meta $30 billion, Oracle $18 billion and Amazon, the most recent, $15 billion.