HSBC's Michael Roberts warns banks are demanding higher returns for AI funding

HSBC: HSBC is a leading global banking and financial services organization with operations spanning corporate, institutional, retail, and wealth management across multiple regions. Michael Roberts, its CEO of Corporate and Institutional Banking, recently stated that banks and investors are growing more selective in providing capital for AI projects and expect stronger returns. This positions HSBC as a key player commenting on the evolving landscape of technology financing. Michael Roberts: Michael Roberts is the CEO of Corporate and Institutional Banking at HSBC, responsible for global transaction banking, financing, and client solutions for international corporates and institutions. In a recent Bloomberg interview, he observed increasing selectivity and demands for higher returns from banks and investors funding AI infrastructure. His perspective highlights practical challenges in deal structuring within the corporate banking sector. AI Investment Scrutiny: Banks and investors are applying heightened due diligence and return requirements to large AI-related financing opportunities. Capital Market Conditions: Current interest rate and yield environments are raising the cost of capital for substantial technology infrastructure projects.