Banks and investors are becoming increasingly selective and demanding higher returns to fund the massive rollout of artificial intelligence, according to Michael Roberts, head of corporate and institutional banking at HSBC Holdings Plc.

“I think there’s a healthy dose of skepticism,” Roberts said in an interview on Bloomberg Television from Bangkok.

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Global stock markets are selling off following a plunge in chipmakers, with a massive rally in AI unraveling over concerns about funding challenges.

At the same time, rising interest rates and multi-decade highs in global bond yields are elevating capital costs for the investments required to build out AI infrastructure, spending that PricewaterhouseCoopers LLP estimates could reach $8.2 trillion in Asia alone by 2050.

“Lenders are going to be much more focused on proper returns, proper structure, things of that nature,” Roberts said. “The deal sizes are very large, and by that nature, they’re more difficult to do.”