AI Sector Accumulates Debt Through Infrastructure Buildout

Economist Cédric Durand reports that AI-related firm valuations have surged and that US tech investment in AI infrastructure drove US growth in 2025, with firms projecting roughly $5 trillion in data-center spending through 2030. He warns the sector increasingly relies on debt and circular financing—citing Nvidia’s planned $100 billion investment in OpenAI and OpenAI’s heavy spending on Microsoft Azure—raising concerns about financial fragility and unsustainable demand.