Can AI Borrowing Create a Debt Bubble?

Mark Cuban says the United States could get into a debt bubble because hyperscalers are borrowing so much.

The federal deficit keeps rising, so the country has to borrow more, and the hyperscalers are borrowing more than they make. Lenders then compete for that business and rates rise. He says a company with a $40 billion debt can reach a point where it cannot raise money anymore. NVIDIA, he says, is subsidizing half the industry because it has the cash, and Meta is borrowing more than it has in cash flow. Until the spending looks like brilliance, he says, private credit stays uncertain and a lot can go wrong. He cites Ray Dalio, who says the country has already crossed the curve toward a debt-laden society. Mark Cuban still thinks the country will figure it out, and he says the path includes pain, because politicians are good at slogans and bad at doing things. Steven Bartlett says many people treat AI as the life raft out of the debt. Mark Cuban says it is a race.