Light business model crisis? AI debt changes the rules on Wall Street

The AI boom is forcing major tech companies to rethink the business model that for decades has ensured high valuations in U.S. markets. Corporate debt has become a key factor, questioning the viability of the traditional minimal-asset approach that characterized giants like Apple, Microsoft, and Meta.

Why AI Requires More Investment and Debt

The reason is simple but transformative: artificial intelligence demands massive infrastructure. Servers, data centers, and processing capacity are not “light” assets. Unlike the historical model where software and intellectual property were the main focus, physical assets are now becoming central again.

Companies are aggressively taking on debt to finance these AI investments. Bloomberg has documented how this phenomenon is raising concerns among investors and analysts about whether the traditional business model can withstand these new financial pressures. The accelerated borrowing introduces risks of over-leverage that were uncommon in the tech sector.

Market Reaction: Uncertainty Over Valuations

Industry experts are closely monitoring how these changes will impact stock prices and investor confidence. There is legitimate concern: if the business model that allowed for premium valuation multiples erodes, what will the new paradigm be?

The situation forces a reevaluation of how to value companies that combine intangible assets (technology, data, talent) with massive physical investments in infrastructure. This shift in business model rules could redefine not only how AI companies are valued but also their long-term profitability prospects.

The fundamental challenge is balancing rapid growth with responsible financial management. Those companies that manage to adapt their business models without falling into extreme over-leverage will likely emerge as leaders in the next decade.