The question we should all be asking about AI

Big Tech stocks fell sharply this week as investors questioned whether massive AI infrastructure spending will pay off, but the bond market financing that spending has largely shrugged. JPMorgan estimates AI spending has reached $1.6 trillion since 2023 and could hit $1 trillion annually for the next decade, with roughly a third of hyperscaler capex this year expected to be debt-financed. The article argues the real question is how long the bond market will sustain the spending spree, since that will ultimately determine whether AI succeeds or busts.