Stijn Van Nieuwerburgh on the AI Buildout’s Hidden Leverage

The AI buildout is becoming increasingly financed by opaque, off-balance sheet partnerships like the Blue Owl and Meta venture “Beignet” that supplement already-surging corporate debt issuance. Given the estimated $9 trillion that will be spent on AI infrastructure between 2025 and 2032, revenue would need to exceed 8% of GDP to give investors modest returns. In this episode, we talk with Stijn Van Nieuwerburgh, Professor of Real Estate and Finance at Columbia University, about projecting AI investment over the next decade, why it’s moving off-balance sheet, and the emerging sources of systemic risk.

Simply Put: Expert perspectives on the trends influencing fixed income, banking, and the macro landscape, hosted by FHN Financial’s Macro Strategist, Will Compernolle. Tune in to better understand what’s moving the markets and what to keep an eye on in the weeks and months ahead. Listen and subscribe wherever you get your podcasts.