How to Navigate the AI Debt Bubble

About this episode

We explore the expected size of AI-related debt, which vehicles hold it, what could go wrong, and how to protect yourself. Topics covered include: • How AI capex boom compares to other large booms and busts • What fixed income vehicles hold AI-linked debt • What mechanisms are being used to transfer AI-debt risk. • How circular finance is contributing to the AI infrastructure buildout • What could go wrong with the AI infrastructure buildout that could lead to losses on AI-related debt • How to tell what exposure you have to AI debt Sponsors Delete Me – Use code David20 to get 20% off NetSuite Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes AI debt slide deck used for episode RBC Weighs $2 Billion Risk Transfer to Hedge Data Center-Linked Loans by Esteban Duarte and Paula Sambo—Bloomberg Hyperscalers Tap External Financing as AI Capex Outruns Cash Flow—FactSet Insight What History Tells Us About The AI Investment Boom by Larry Swedroe—Financial Advisor Goldman Sachs Warns on AI’s Debt Tsunami — Is This