The massive capital expenditure for AI infrastructure will not primarily come from traditional unsecured corporate credit. Instead, a specialized form of private credit known as asset-based finance (ABF) is expected to provide over $800 billion of the required $1.5 trillion in external funding.

As AI agents become sophisticated, they'll need to pay for services. Traditional banking is too slow and fragmented for them. Crypto, as the internet's native money, provides the instant, global, low-fee rails for AI agents to transact with each other and with web services, creating a major new use case.

Private credit has become a key enabler of the AI boom, with firms like Blue Owl financing tens of billions in data center construction for giants like Meta and Oracle. This structure allows hyperscalers to expand off-balance-sheet, effectively transferring the immense capital risk of the AI build-out from Silicon Valley tech companies to the broader Wall Street financial system.

AI and crypto are not competing but are parallel, complementary forces reshaping business. While AI revolutionizes company creation and internal operations, Internet Capital Markets (powered by crypto) are fundamentally rewriting the external functions of capital formation, trading, settlement, and ownership for this new generation of AI-native companies.

The financing for the next stage of AI development, particularly for data centers, will shift towards public and private credit markets. This includes unsecured, structured, and securitized debt, marking a crucial role for fixed income in enabling technological growth.

Contrary to the belief that high rates boost revenue from reserves, Circle's CEO reveals lower rates fuel stablecoin adoption. High rates increase the opportunity cost of holding non-interest-bearing cash, whereas lower rates encourage capital velocity and investment in new technologies, expanding the market.

Cerebras CEO Andrew Feldman argues that massive speed improvements in AI are not just about reducing latency. Like how fast internet turned Netflix from a DVD mailer into a studio, ultra-fast AI will enable fundamentally new applications and business models that are impossible today.

Before stablecoins, launching financial services in N countries required N² unique integrations. Now, companies can build on a single dollar-stablecoin standard and instantly operate globally. Adding other local stablecoins becomes a simple N-style addition, radically simplifying global expansion.

Private credit is a major funding source for the AI buildout, particularly for data centers. Lenders are attracted to long-term, 'take-or-pay' contracts with high-quality tech companies (hyperscalers), viewing these as safe, investment-grade assets that offer a significant spread over public bonds.