If AI demand disappoints relative to the massive infrastructure buildout, a sharp reversal in capex spending could create significant macroeconomic headwinds and market vulnerability
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"The pace, though, is the worry: by Slok's reckoning AI investment is accelerating faster than housing did before the 2008 crash, which is exactly the sort of trajectory that makes central bankers nervous. The Bank for International Settlements has warned that an AI bust could hit credit markets as hard as 2008, precisely because so much of it runs through debt and interlocking deals."
"A cycle that builds at 0.85 percentage points a year can unwind at a similar pace, and that, rather than the buildout itself, is the macro risk if AI demand disappoints. The danger begins if the revenue needed to justify that infrastructure fails to arrive."