US stocks slid on Monday as an AI infrastructure sell-off continued, further raising fears that a tech bubble may soon pop.
Oracle has lost almost half its value since its September peak, which briefly saw its founder become the world’s richest man. Data center buildouts have left some tech companies with enormous debt: One venture capitalist noted that Oracle has a debt-to-equity ratio of 500%, compared to 9% for Alphabet.
The hedge fund Bridgewater said in a note that the situation was “dangerous,” with companies unable to fund the huge outlays, and with large parts of the US economy dependent on AI. There is “a reasonable probability that we will soon find ourselves in a bubble,” a Bridgewater executive said.