Wall Street's AI Bubble Dilemma

Wall Street's AI Bubble Dilemma

Update: 2025-12-05
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Wall Street grapples with a delicate balance: extending substantial loans to AI giants while safeguarding against a potential market bubble. The urgency to reduce risk is palpable, with Oracles debt insurance costs soaring. Banks like Morgan Stanley are exploring risk transfer strategies to manage exposure. Tech giants and utility firms are set to spend billions on AI infrastructure, but profitability isnt guaranteed. Recent outages and delays have highlighted the risks, leading to paused bond sales and increased scrutiny. The financial sector is adapting to massive deals, reflecting the immense growth and investment in AI.

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Wall Street's AI Bubble Dilemma

Wall Street's AI Bubble Dilemma