Wall Street Sees AI Bubble Risk Amid Soaring Costs & Doubts

• Wall Street shows increasing skepticism about the AI boom's sustainability, despite ongoing investment.
• Signs of doubt include recent selloffs in Nvidia and Oracle shares, and souring sentiment around OpenAI-exposed companies.
• OpenAI plans to spend $1.4 trillion but generates less revenue than operating costs, relying heavily on fundraising, raising fears of circular financing.
• Big Tech is projected to spend over $400 billion on data centers, leading to rising depreciation and potential pressure on free cash flow.
• While AI valuations are high, they are not as extreme as the dot-com bubble for major tech players, though some AI stocks have very high valuations.

Why It Matters: It warns investors about the potential AI bubble and its financial risks.