MIT Technology Review Analyzes Risks of Potential AI Bubble Burst

MIT Technology Review reports that hyperscalers, including Alphabet, Microsoft, Amazon, Meta, and Oracle, may need to nearly triple their productivity by 2030 to break even on projected $1.1 trillion infrastructure investments. Wharton professor Jessica Wachter warns that without such growth, the current capital expenditure could represent the largest misallocation of capital in history. Furthermore, Morgan Stanley notes that hyperscalers are increasingly relying on external debt, such as private credit arrangements, to fund data center expansion, potentially exposing pension funds and retirement savings to greater risk.