Robert Cohen, director of global developed credit at DoubleLine, said that artificial intelligence debt is likely to reach bubble levels in credit markets [1].

This warning suggests that the aggressive financing fueling the AI sector may be outpacing the actual economic returns of the technology. If credit markets become overextended, a correction could lead to widespread defaults among companies that borrowed heavily to build AI infrastructure.

Cohen spoke during a panel at the Bloomberg Global Credit Forum in New York on June 3, 2026 [1]. He said that the rapid growth in AI-related financing is creating conditions that mirror a financial bubble [1].

While the AI boom has driven significant investment in hardware and software, Cohen said the risks associated with the debt used to fund these expansions are a concern [1]. The credit market often lags behind equity markets in recognizing risk, but the current trajectory of AI borrowing is a primary concern for global credit managers [1].

Industry analysts have noted that the scale of capital expenditure required for AI is unprecedented. As companies take on more leverage to remain competitive, the sustainability of this debt depends on the technology's ability to generate immediate, and scalable, revenue [1].

Cohen's perspective comes as financial institutions continue to weigh the potential of generative AI against the volatility of the markets supporting it [1]. The concentration of risk in a few key technology players, and their suppliers, could amplify the impact of a market downturn [1].

“Artificial intelligence debt is likely to reach bubble levels in credit markets.”

This warning highlights a shift in AI risk assessment from equity valuations to the debt markets. While stock prices often signal a bubble first, a credit bubble implies that the underlying borrowing used to fund AI development may become unsustainable, potentially leading to a systemic shock in corporate lending if the expected productivity gains from AI do not materialize quickly enough to service the debt.