Investors increasingly nervous over AI bubble
Alphabet, Meta, and Oracle all either issued new bonds or reportedly planned to do so, with interest rates on the rise. Investors voiced growing worry the AI bubble will burst, as concerns mounted over eye-popping capex plans, debt issuance, and expansion. Alphabet, Meta, and Oracle all either issued new bonds or reportedly planned to do so, with interest rates on the rise. Separately, institutional investors have urged Anthropic — which expects to spend nearly $900 billion on AI infrastructure in the coming years — to lower its IPO valuation target, according to The Wall Street Journal. Demand has meanwhile surged for options and credit-default swaps that help protect against what is now the biggest market bet in history. “At some point in time, there’s going to be a downturn,” the CEO of bond giant PIMCO warned, “ and then things are going to break.”
Alphabet, Meta, and Oracle all either issued new bonds or reportedly planned to do so, with interest rates on the rise. Investors voiced growing worry the AI bubble will burst, as concerns mounted over eye-popping capex plans, debt issuance, and expansion. Alphabet, Meta, and Oracle all either issued new bonds or reportedly planned to do so, with interest rates on the rise. Separately, institutional investors have urged Anthropic — which expects to spend nearly $900 billion on AI infrastructure in the coming years — to lower its IPO valuation target, according to The Wall Street Journal.
Demand has meanwhile surged for options and credit-default swaps that help protect against what is now the biggest market bet in history. “At some point in time, there’s going to be a downturn,” the CEO of bond giant PIMCO warned, “ and then things are going to break.”