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Credit Ignites the AI Frenzy — and Inflates Bubble Fears

Credit Ignites the AI Frenzy — and Inflates Bubble Fears

Published:
2025-08-23 17:24:37
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Credit Fuels the AI Boom — and Fears of a Bubble

Leverage fuels the artificial intelligence gold rush—while skeptics eye the exit.

The Debt-Driven Surge

Cheap capital floods AI startups, pushing valuations into stratospheric territory. Venture firms pour billions into untested models while investment banks underwrite debt for hardware acquisitions nobody’s sure will pay off.

Bubble Territory?

Sound familiar? It should. The pattern echoes every credit-fed mania from dot-com to housing—except this time, the ‘collateral’ is algorithmic potential and GPU clusters. Wall Street’s already packaging AI loans into structured products. What could go wrong?

Smart money hedges while dumb money leverages. Some things never change.

|Square

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