Overview
- Oaktree’s Howard Marks labeled the surge an AI bubble but urged a moderate stance, warning that debt-fueled SPVs and a likely winner-take-all dynamic make leveraged exposure especially dangerous.
- At Abu Dhabi Finance Week, major investors cautioned on lofty valuations yet backed ongoing spend on data centers and power, with Blackstone’s Stephen Schwarzman highlighting the scale of electricity needed for growth.
- Reuters reported that institutions favor infrastructure plays but are wary of high multiples and cash flow strain, citing Oracle’s expected years of negative free cash flow and calls from KKR and Mubadala for discipline.
- Yahoo Finance detailed a tightening loop where chipmakers, clouds and AI labs pre-buy capacity and invest in one another, with examples spanning Microsoft–Nvidia–Anthropic ties and AMD’s supply-plus-stake arrangements with OpenAI.
- Fortune’s VC panel said excess is concentrated in GPUs, data centers and large model labs while applications may be underfunded, as other analysts argued returns for hyperscalers remain visible despite power and cooling bottlenecks.