Why AI Suddenly Looks Extra Bubbly

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Tech spending on AI continues to balloon with the expectation of future profits, but new data suggests that users are cutting back on spending, which could spell trouble and a coming price war between major players. So what the hell is going on with AI?

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Sources:

LLM Token Expenditure Index
https://portal.silicondata.com/token-index-chartĀ 
https://x.com/Jadzo1_/status/2076064566543589744/photo/3 Companies tapering use of AI
https://www.ft.com/content/b1a62a7f-6df5-4c90-94ce-64ce9c9961b6?syn-25a6b1a6=1Ā 
https://www.theverge.com/tech/930447/microsoft-claude-code-discontinued-notepadĀ 
https://www.wsj.com/tech/ai/openai-considers-drastic-price-cuts-anticipating-war-for-users-with-anthropic-9b8c178eĀ 

AI borrowing data
https://www.bloomberg.com/news/articles/2026-06-25/ai-demand-begins-to-justify-massive-cost-of-data-center-buildoutĀ 
https://www.bloomberg.com/news/articles/2026-05-19/ai-data-center-borrowing-rapidly-climbs-wall-street-s-risk-listĀ 
https://www.bloomberg.com/news/articles/2026-05-13/ai-bond-binge-overwhelms-wall-street-pushing-alphabet-overseasĀ 
https://www.bloomberg.com/news/articles/2026-02-02/the-3-trillion-ai-data-center-build-out-spurs-a-debt-market-boomĀ 
https://www.ft.com/content/28380abc-72f9-4287-8d36-2823c73358ce?syn-25a6b1a6=1Ā 

Circular financing
https://www.bis.org/publ/work1367.pdfĀ 

Impact of Chinese models
https://www.apollo.com/wealth/insights-news/insights/daily-spark/a-slower-ai-payoff-would-be-everyones-problem

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