🚨 Is the AI Bubble Already Here? Amazon Might Have Just Confirmed It. 🚨
👉 Amazon just did something it hasn’t done in three years — it went to the bond market to borrow money.
They’re issuing debt in up to six parts, including a 40-year bond, to raise cash for “general corporate purposes.” That sounds normal… until you look at the bigger picture.
Here’s why this matters:
• Big tech companies are spending massively on AI.
• Data centers, chips, and infrastructure cost billions.
• But the ROI is still unclear.
• Cash levels are going down.
• So companies are now borrowing to stay ahead in the AI race.
🚂 This is how bubbles form:
Everyone spends because everyone else is spending — not because the returns are proven.
What I think is happening
We’re entering a “perfect storm” where:
• Corporates have less cash
• But feel forced to keep investing in AI
• So they turn to debt and bond issuance
• Even though no one knows if AI will pay off fast enough
It’s the same pattern we saw in the dotcom boom — big promises, huge spending, unclear profits.
👀 My view: AI is real.
But the AI economics aren’t real yet.
When companies as big as Amazon start borrowing to keep up, it tells me one thing:
👉 The AI bubble is forming — and we’re closer to the peak than most people think. 🫧🗯️
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