The explosive growth of artificial intelligence in America is encountering a significant new hurdle: the dwindling availability of cheap capital. As the AI build-out transitions into a more mature phase, lenders and investors are becoming increasingly selective, scrutinizing potential investments with greater rigor and imposing tougher conditions. This shift marks a departure from the earlier, more permissive environment where capital flowed readily, fueling rapid expansion. Now, the focus is on profitability and demonstrable returns, as the cost of borrowing rises and risk appetite diminishes, potentially slowing the pace of AI development and deployment across the nation.
Adapted from: WSJ.com: Markets
