Banks Hesitate to Finance AI Projects Despite Anthropic and Google Backing
Growing concerns over market volatility, rising borrowing costs and uncertain returns are making financial institutions more cautious about funding artificial intelligence infrastructure projects.
Banks and credit investors are becoming increasingly reluctant to finance artificial intelligence infrastructure projects, even when major technology companies such as Anthropic and Google provide financial guarantees. According to a Reuters report published on November 9, 2026, several lenders that were previously competing to finance AI-related deals are now reconsidering additional exposure to the sector. The shift follows a major stock market sell-off that wiped approximately $2.5 trillion from the Nasdaq 100 in a single trading session, raising concerns about the sustainability of massive AI investments.
Financial institutions are increasingly examining the financial strength of borrowers, expected cash flows and contractual agreements before approving new loans. Lenders are particularly concerned about whether AI companies can generate enough revenue to repay billions of dollars borrowed for data centres, advanced processors and computing infrastructure. Some banks have reportedly expressed reluctance to finance projects even when backed by guarantees from major companies such as Google and Anthropic. Meanwhile, Goldman Sachs estimates that global borrowing by major cloud technology companies could reach $420 billion in 2027, compared with approximately $250 billion in 2026.
The tightening lending environment is affecting smaller AI infrastructure companies more severely, particularly neocloud providers and independent data centre operators. CoreWeave has experienced a significant decline in its share price and bond values, while AI cloud company Nebius reportedly abandoned plans for a high-yield bond offering. Investors are also demanding higher returns before financing AI-related projects, with borrowing spreads for 10-year hyperscaler debt widening by approximately 50 basis points this year. These developments suggest that lenders are becoming more selective about which companies they believe can successfully repay their debts.
Despite the growing caution, demand for AI infrastructure financing remains substantial as technology companies continue expanding their data centre networks and computing capacity. However, lenders are increasingly concerned about construction delays, changing regulations, excessive borrowing and the possibility that demand for AI services may not meet expectations. The growing financial exposure also raises questions about the potential risks to banks and private credit institutions if major AI investments fail to deliver expected returns. Although the AI infrastructure boom is far from over, the latest developments indicate that access to affordable financing could become a major challenge for the industry.
