By: Russ Kamp, CEO, Ryan ALM, Inc.

As a follow-up to the September 30th post below, here is a note that I found from Bloomberg this morning.

“AI’s enormous funding needs keep growing. SpaceX is said to be in talks to raise $40 billion to buy Nvidia chips in what would be one of the biggest debt financings yet for the technology’s buildout, just days after Broadcom beganlining up $60 billion in AI chip financing for Anthropic and others. Ray Dalio warned AI is a “classic bubble” nearing the point of bursting as rates rise and investors seek cash.”

I’ve been saying for a while that rising rates would put significant pressure on equities in general and the hyperscalers more specifically. It is only becoming more magnified. If you are managing a pension plan, I encourage you to take risk off the table and secure those improved funded ratios.