Big Technology Podcast · Wednesday, August 12, 2026
Paul Kedrosky highlights a significant shift in AI infrastructure funding, noting that as of Q2 2023, over 50% of data center financing comes from external sources, indicating a move away from cash flow. This reliance on debt is a departure from previous assumptions and raises potential concerns for the market.
“Well, guess what? As of the second quarter of 2023, this is now more than 50% of the funding for data centers is external financing, which is obviously the term of art for off balance sheet and out of your own cash flows.”
“And now of course, the same people who were saying that, you know, a year ago were saying that that would matter is now saying, well, that's perfectly fine now.”