In the high-stakes world of artificial intelligence, where capital expenditures are soaring into the trillions, BlackRock’s top tech fund manager is sounding a clarion call: debt will be the fuel that powers the next phase of AI growth. Tony Kim, lead portfolio manager of the BlackRock Technology Opportunities Fund, argues that tech giants must overcome their traditional aversion to leverage to fund massive AI infrastructure needs.

According to a recent briefing by The Information, Kim stated, “There is no doubt that with the trillions of dollars of capex required for AI, companies will need to tap into debt markets to fund this expansion.” This perspective comes amid a frenzy of AI investments, where companies like Microsoft and Nvidia are pouring billions into data centers and chip development.

BlackRock’s outlook aligns with broader market trends. Reuters reported in December 2024 that BlackRock expects the AI boom to continue boosting U.S. stocks in 2025, though rising U.S. government debt could pose risks. The asset manager, overseeing $11.5 trillion, sees AI innovations benefiting equities more in the U.S. than in Europe.

The Leverage Shift in Tech Financing

Historically, tech companies have prided themselves on lean balance sheets, funding growth through cash flows and equity. But the scale of AI demands is changing that calculus. Kim highlighted that hyperscalers—major cloud providers like Amazon, Google, and Microsoft—are already turning to debt to cover 94% of their operating cash flow dedicated to AI buildouts.

Bank of America research, as cited in recent X posts and Bloomberg reports, shows that AI-related public debt offerings reached $75 billion in just September and October 2025. This surge represents nearly as much as all such financings from 2020 to 2024 combined, underscoring the rapid pivot to borrowing.

BlackRock’s AI Infrastructure Push

BlackRock isn’t just talking about debt; it’s actively participating. In September 2024, the firm partnered with Global Infrastructure Partners, Microsoft, and Abu Dhabi’s MGX to launch a fund targeting up to $100 billion in AI infrastructure investments, including debt financing, per Reuters and Microsoft News. This initiative expanded in March 2025 to include Nvidia and xAI, as reported by Investopedia.

The partnership aims to build data centers and power infrastructure to support AI’s energy-hungry demands. BlackRock’s press release noted that the fund could enhance American competitiveness in AI while addressing growing energy needs.

Risks Amid Optimism

Yet, this debt-fueled spree isn’t without perils. BlackRock’s Investment Institute warns that escalating U.S. debt levels could cloud the 2025 outlook, potentially leading to higher interest rates and market volatility, according to Yahoo Finance and The Globe and Mail reports from December 2024.

Kim’s comments emphasize the need for tech firms to embrace leverage strategically. “Tech companies will have to shed their aversion to leverage,” he said in The Information briefing, pointing to the multitrillion-dollar AI spending projections for 2026 alone, as detailed in Bloomberg’s October 2025 newsletter.

Broadening AI Investment Landscape

Beyond BlackRock, the AI debt wave is benefiting a range of players. Bloomberg noted that while Nvidia has dominated headlines, companies like AMD and Broadcom stand to gain from the spending spree. Earnings from Alphabet, Microsoft, and Meta in October 2025 showed continued heavy AI investments, per Bloomberg Tech reports.

X posts from industry observers, such as those by Rohan Paul and The CURMUDGEON, highlight how $200 billion-plus in fresh debt is funding data centers, with hyperscalers issuing jumbo bonds at a record pace.

Energy Demands and Utility Plays

AI’s voracious appetite for power is another critical angle. An X post by Camus in October 2025 warned that BlackRock is acquiring utilities to power AI data centers, potentially prioritizing AI over residential needs. This ties into BlackRock’s infrastructure fund, which includes energy projects.

Microsoft’s involvement in the $30 billion fund, expandable to $100 billion with debt, underscores the intersection of tech and energy. As FT reported in September 2024, the fund targets data centers and energy to meet AI demands.

Market Sentiment and Future Projections

Investor sentiment on X reflects excitement mixed with caution. Posts from Unusual Whales and Jonah Lupton in September 2024 buzzed about the fund’s potential, with some suggesting it could reach $100 billion including debt.

BlackRock’s own insights, published on their site in August 2025, explore AI-driven investing and deflationary growth, positioning AI as a productivity booster for portfolios.

Navigating Debt in a High-Stakes Era

As AI evolves, the reliance on debt could reshape corporate finance. BofA Global Research, referenced in X posts by Coby Vu, describes a ‘borrowing blitz’ with $75 billion in AI titan bonds and loans in late 2025.

Mikael Pawlo’s X post from November 2025 notes that 25% of U.S. debt net supply this year is AI-related, totaling over $200 billion for rapidly depreciating assets, yet demand remains high.

Strategic Implications for Investors

For industry insiders, this signals a maturation of the AI market. BlackRock’s bet on debt-funded growth could yield high returns but requires vigilance on interest rates and geopolitical risks.

Kim’s vision positions debt as essential for scaling AI, potentially democratizing access beyond cash-rich giants and fostering broader innovation.

The Global AI Funding Ecosystem

Internationally, partnerships like BlackRock’s with MGX highlight global capital flows into AI. Reuters’ September 2024 coverage details the fund’s mobilization of up to $100 billion.

As 2025 progresses, with dates like the current November 4, monitoring debt trends will be key. BlackRock’s optimistic stance, tempered by debt concerns, encapsulates the high-wire act of AI investment.