December 15, 2025
Article from Reuters
Article Synopsis
The AI spending boom is entering a riskier phase as major tech companies increasingly rely on external financing to fund soaring costs, prompting warnings of a potential bubble from Bridgewater Associates. Investor concerns are growing over whether massive AI capital expenditures will ultimately deliver sustainable profits, especially as valuations across the AI ecosystem surge.
Financing for AI data centers has exploded, reaching $125 billion this year, while constraints on physical infrastructure add further risk. Recent weak forecasts from Oracle have heightened anxiety that the AI trade may be becoming overextended.
