The AI infrastructure story is hitting a wall—not technical, but financial.
Since early May, the hyperscalers have dropped ~25%. At the same time, tech borrowing costs have spiked. Credit spreads on tech and telecom debt are widening fast.
This isn't about whether AI works. It's about whether the economics work—and whether anyone can afford to keep building at this pace without clearer returns.
Markets are asking: Who pays for all this? And what happens when the bill comes due before the revenue shows up?
The AI trade isn't dead. But the easy money phase is over.
Since early May, the hyperscalers have dropped ~25%. At the same time, tech borrowing costs have spiked. Credit spreads on tech and telecom debt are widening fast.
This isn't about whether AI works. It's about whether the economics work—and whether anyone can afford to keep building at this pace without clearer returns.
Markets are asking: Who pays for all this? And what happens when the bill comes due before the revenue shows up?
The AI trade isn't dead. But the easy money phase is over.