Bridgewater warns Big Tech's reliance on external capital to fund AI boom is 'dangerous'

Reuters

Mon, December 15, 2025 astatine 9:22 AM CST 1 min read

Dec 15 (Reuters) - The AI spending roar is entering a "dangerous" signifier arsenic Big Tech firms progressively pat outer ​investors to screen mounting costs, a apical enforcement ‌at hedge money elephantine Bridgewater Associates said connected Monday.

The informing underscores the grade ‌of unease rippling done markets arsenic respective investors person begun to question the sustainability of monolithic superior spending connected AI.

While the exertion has profoundly permeated the economy, critics are opening to ⁠wonder however terrible ‌the fallout could beryllium if the roar fails to construe into tangible profits.

"Going forward, determination is ‍a tenable probability that we volition soon find ourselves successful a bubble," Bridgewater's Co-Chief Investment Officer Greg Jensen wrote successful a note.

With costs ​rising beyond what interior currency flows tin support, companies ‌are turning to extracurricular sources of backing to prosecute their ambitions.

A UBS study past period said AI information halfway and task financing deals surged to $125 cardinal until November this year, from $15 cardinal successful the aforesaid play successful 2024.

The latest bout ⁠of anxiousness implicit the AI commercialized ​was sparked by Oracle's anemic income ​and nett forecasts for the 3rd quarter, issued past week.

Jensen said the surge successful request for computing ‍power would request ⁠an unprecedented carnal buildout of information centers, which faces galore constraints.

At the aforesaid time, valuations crossed the AI ⁠ecosystem person soared, and the U.S. system is becoming progressively concentrated astir ‌the technology, helium added.

(Reporting by Niket Nishant successful Bengaluru; ‌Editing by Krishna Chandra Eluri)