Topic
The debate over whether valuations and capital spending tied to artificial intelligence have run ahead of the revenue the technology can produce.
Temasek CEO Dilhan Pillay Sandrasegaran defended a unit's S$6.6 billion data centre sale, saying further investment would have raised its costs. The worry he gave is whether AI infrastructure spending lifts borrowing costs for the Temasek companies that need credit to adopt the technology.
Reality
Ray Dalio called AI a "classic bubble" near bursting in Singapore, citing rising rates on AI debt that Morgan Stanley sees nearing $570 billion this year. With hyperscaler capex near all of operating cash flow, the cost of the bonds that fill the gap decides whether he is right.
Reality
Michael Burry swapped his Micron and Nebius shorts for put options expiring in June and September 2027, with Micron strikes near $500. His AI-bubble call now has a deadline and price levels that chip-stock holders can measure their own positions against.
Reality
Nvidia authorized a record $150 billion stock buyback on Monday, lifting its repurchase capacity to $235 billion through fiscal 2028. The profit sits with the chip supplier, so teams renting that compute should budget on today's prices through 2028.
Reality
GMO's Ben Inker and John Pease expect share supply to end the AI bubble, pointing to the June 2027 lockup release on roughly $2 trillion of SpaceX stock. Their argument rests less on AI revenue than on where buyers of those shares find the cash.
Reality