AI boom's financing model raises long-term viability concerns

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The AI boom is driving unprecedented spending on data centers and powerful chips, with an estimated $2.9 trillion in global data center spending from 2025 to 2028. Roughly half of this buildout is financed through borrowing or investor capital, raising questions about the long-term viability if AI spending continues to escalate and if AI business model growth does not continuously and rapidly justify the investment. Even a slowdown in growth, not just failure, could lead to significant problems.