The AI bubble is starting to flash warning signs
Major bank ING has put 12 loans worth $500 million, linked to data center construction, up for sale. They include financing for Stargate — a massive AI project by OpenAI, SoftBank, and Oracle.
At the same time, reports have emerged of problems with one of Stargate’s projects, while AI companies’ debt securities have come under pressure.
The main problem is the colossal cost. Companies are investing hundreds of billions of dollars in infrastructure that has yet to prove it can pay for itself.
If banks start cutting back on financing on a large scale, the AI boom could face a serious slowdown. And technology giants’ stocks could also come under pressure.
The bubble hasn’t burst yet, but investors are already getting nervous
$AAPLB
$NVDAB
$MSFTB
Major bank ING has put 12 loans worth $500 million, linked to data center construction, up for sale. They include financing for Stargate — a massive AI project by OpenAI, SoftBank, and Oracle.
At the same time, reports have emerged of problems with one of Stargate’s projects, while AI companies’ debt securities have come under pressure.
The main problem is the colossal cost. Companies are investing hundreds of billions of dollars in infrastructure that has yet to prove it can pay for itself.
If banks start cutting back on financing on a large scale, the AI boom could face a serious slowdown. And technology giants’ stocks could also come under pressure.
The bubble hasn’t burst yet, but investors are already getting nervous
$AAPLB
$NVDAB
$MSFTB
