Overview
- In a new memo, Oaktree’s Howard Marks labels the AI surge a bubble and advises investors to avoid both all-in bets and staying out entirely.
- Marks warns about rising leverage, off‑balance‑sheet SPVs and circular deals, arguing that debt exposure is particularly vulnerable in a winner‑take‑all market.
- At Abu Dhabi Finance Week, major investors voiced concern over stretched AI valuations yet backed investment in data centers and power capacity.
- Reuters reports that Alphabet, Meta and Oracle have recently tapped bond markets to fund AI efforts, stoking worries about a financing-driven bubble.
- Blackstone’s Stephen Schwarzman says AI could require roughly doubling electricity grids, while KKR’s Raj Agrawal urges caution on high data‑center multiples.