Fortress Investment Group co-CEO Jack Neumark warned lenders against rushing into AI infrastructure deals out of fear of missing out, Bloomberg reported Monday, citing his remarks at the Milken Institute's Canada Investment Summit in Toronto.

Neumark said credit investors get a largely fixed return on AI infrastructure loans while still bearing the risk of falling asset values, unlike equity investors who share in the upside, according to the report. "You're not getting paid for that upside and you're stuck in the investment if it goes sideways," he said, per the report.

Bloomberg said Neumark urged lenders to stay short duration, assess residual asset value, and ensure exit options exist, arguing conviction in AI shouldn't be confused with conviction in every debt deal financing it.