The AI boom is facing another supply crunch. This time it’s the amount of capital available to feed Silicon Valley’s endless need for cash

A new supply crunch is closing in on the AI boom as Wall Street starts to reach the limits of how much capital it’s willing to hand over to Silicon Valley.

Hyperscalers have already been grappling with shortages of chips, materials and other physical inputs needed for AI infrastructure. They are also running out of political capital as voters push back on the aggressive data center build-out.

Now the spigot of money is starting to dry up. OpenAI slashed the target on its latest funding round to $20 billion from $30 billion, sources told the Financial Times. That’s after securing about $11 billion in commitments, less than half of its original goal, according to the Wall Street Journal.

A top credit rating agency also dented Silicon Valley’s appeal to debt markets. S&P Global cut its credit outlook on Meta to “negative” from “stable” late Friday, citing negative cash flow and uncertainty around capital expenditure ​plans.

Meanwhile, the head of technology, media and telecom lending at a large European bank told Bloomberg last week that the........

© Fortune