BlackRock: Private Credit to Play a Bigger Role in AI Infrastructure Financing
Claire Weston
BlackRock's head of research Jean Boivin says AI infrastructure capex among the six U.S. hyperscalers could approach $820 billion this year, forcing companies to borrow from nearly every channel — giving private credit a structural tailwind.
Why would private credit become AI infrastructure's go-to lender?
Boivin's core argument: AI infrastructure needs so much capital that equity and public bond markets alone cannot fill the gap. Companies will have to borrow from nearly every available channel.
This means → private credit — large asset managers lending directly to companies, bypassing banks and public markets — is no longer a niche supplement. It is being structurally pushed to the front of the financing chain.
Boivin called the current wave "an unprecedented global transformation" and explicitly rejected comparisons to the 2001 dot-com bubble or the 2008 housing crisis, saying this cycle has no historical precedent.
$820 billion in capex — where does the money come from?
Bloomberg Intelligence data: the six major U.S. hyperscalers are expected to spend close to $820 billion in capex this year, up nearly 80% from the 2025 record.
The fundraising is already underway — Alphabet announced plans last month to raise $85 billion in equity, and Amazon completed a $25 billion bond offering on Tuesday.
In plain terms = tech giants are tapping both equity and debt markets at massive scale simultaneously, a sign that no single channel is big enough on its own.
What is the "displacement effect" — does AI's capital pull starve everything else?
Boivin flagged a "displacement effect" inside the broader economy: capital is flooding into AI infrastructure, compressing growth room for non-AI sectors.
In plain terms = the economy's total capital pool is finite. AI buildout acts like a giant pump, drawing funding away from other industries.
His words: "If we really continue this buildout, the non-AI part of the economy will not be able to grow at the same pace."
Doesn't private credit itself carry risk?
Boivin acknowledged that "the world will have to lever up, and that creates risks that need to be managed" — but argued there is "no real alternative" for financing AI infrastructure.
This reflects a real tension: the private credit market has not been trouble-free lately. Apollo Global Management and Ares Management have both restricted investor fund redemptions.
Boivin's risk calculus: lend first to large companies with strong balance sheets, where risk is more manageable. But he conceded it is still too early to judge which companies will ultimately win from AI investment.
What does this mean for small- and mid-cap companies?
Boivin added a signal: the range of companies benefiting from AI is extending from mega-caps into the small- and mid-cap space.
This means → the opportunity window for private credit is not limited to top-tier tech firms. Smaller companies' financing needs are expanding too.
His assessment: "The growth runway in this space is quite considerable."
Content is for reference only, not financial advice.