The Financial Stability Board (FSB) has issued a stark warning regarding the rapidly growing private credit market and its heavy exposure to the artificial intelligence sector.

In line with AI concentration risk, the industry share of private credit deals surged to over 33% in 2025, nearly doubling its average of 17% from the previous five years. 

The FSB warned that AI asset valuations have increased so rapidly that a “sharp correction” could result in massive losses for investors. By focusing heavily on tech infrastructure and data centers, private credit funds are becoming dangerously exposed to........

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