Commentary: How the U.S. AI Boom Echoes the Financial Crisis

The U.S. artificial intelligence sector is facing mounting systemic risks as skyrocketing capital expenditures and opaque financing structures threaten the future profitability of the industry’s leaders.

Driven by fierce competition and a narrowing technological gap with low-cost Chinese alternatives, U.S. tech giants are pouring unprecedented amounts of borrowed capital into hardware and infrastructure to maintain their edge.