Data center debt is the new subprime and Mag 7 are the banks this time

Today everyone is looking at GPUs, AI models and trillion dollar valuations.

Maybe the bigger story is the financing behind the buildout.

Hundreds of billions in capex.

Massive debt issuance.

Long dated infrastructure projects.

Off balance sheet commitments.

Everyone assumes AI demand keeps growing forever.

What happens if it only slows?

You don’t need AI to fail.

You only need the expected returns to fall below the cost of financing them.

That is how credit problems begin.

I’m not saying data centers become the next subprime mortgage market.

I’m saying every bubble eventually finds its weakest link.

Today, the bond market, the credit market and the equity market all started asking the same question at the same time.

Who is paying for the biggest AI buildout in history… and what happens if the cash flows don’t arrive fast enough?

https://x.com/cryptorover/status/2081968458200432858