AI Boom's $3 Trillion Bet: Will it Pay Off?

The United States' capital markets are fueling a significant artificial intelligence boom, with projections indicating hyperscalers might invest over $3 trillion through 2030 in data and power infrastructure. Major tech firms, representing approximately a quarter of the S&P 500's market capitalization, are heavily involved and expanding their presence in debt markets to finance this growth. Companies like Meta have issued record-breaking corporate bonds for their infrastructure projects. Regulators are being urged to proactively assess the potential economic fallout if this AI boom were to falter. This includes gathering data to pinpoint concentrations of leverage and mandating sufficient equity capital to build financial resilience. The current regulatory approach, characterized by relaxed equity requirements and reduced monitoring of systemic vulnerabilities, may need re-evaluation to better anticipate potential negative outcomes in the rapidly evolving AI landscape.