- Bank for International Settlements warns of AI bubble pop risking global economy
- Oracle's stock dropped 40% in a month, exposed to AI bubble risks
- Hyperscalers like Amazon, Microsoft, Google, Meta invest billions with uncertain returns
- Risk extends to suppliers, construction firms, and small businesses
- Enterprises seek control, open-source models, and predictable pricing over frontier AI
- Oracle's SEC filing highlights dependency on OpenAI's uncertain payments and capacity risks
- Challenges include data center permitting, power sourcing, and political opposition
- AI companies may raise prices, but market tolerance is limited
- Shift towards using AI models less and optimizing costs signals bubble strain