Wall Street flags AI debt bubble as infrastructure spending outpaces returns

Financiers are increasingly voicing concern that the massive debt accumulated to fund AI data centers and chips is disconnected from economic reality, with a widening gap between infrastructure costs and actual usage revenue. This marks a notable shift in sentiment among banks that have been major lenders to AI projects. The risk is that a pullback in financing could trigger a correction in AI-related asset valuations and broader tech-led markets.