World Bank's Banga: Availability of capital 'not really an issue' as AI demand drives up borrowing costs

World Bank President Ajay Banga said on Tuesday that capital remained available despite concerns of artificial intelligence sending interest rates higher. "It's not really an issue," Banga said in an interview on CNBC's "Squawk Box." Banga said the World Bank mobilized $112 billion last year, around three times higher than the amount recorded three years prior. He said investors may be concerned about circular financing and the business model tied to AI. But Banga told CNBC that emerging markets are not running into the same hesitancy because the investments focus more on infrastructure like bridges and roads. These countries also look at smaller-scale uses of AI, he said, while developed counterparts need funding to support large use cases.