AI, speculation, and what remains

There is a lot of noise around AI at the moment, and much of it is coming from the financial markets.

Circular financing, pressure on bond markets, data centre cancellations, heavily indebted infrastructure providers and difficulties securing enough electricity. Investors are asking harder questions about how the expansion is being financed and whether the expected returns will materialise. Recent reporting on AI funding and neocloud debt and Microsoft’s cancellation of an Nscale data centre agreement illustrates those concerns.