Wall Street is no longer willing to fund AI at any price

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For the past two years, one assumption drove nearly every major technology investment.

Spend whatever it takes.

The market will reward you later.

That assumption is beginning to crack.

Reports indicate OpenAI is leaning toward delaying its IPO until 2027, with advisers pointing to choppy markets, weaker retail demand for ultra-high valuations, and the possibility that waiting could produce a better outcome.

The hesitation comes at a time when some of Wall Street’s biggest names are questioning the entire AI trade.

Jeremy Grantham has urged investors to reduce exposure to expensive technology stocks, arguing valuations remain among the richest in market history.

Meanwhile, the economics of AI are becoming clearer.

The companies building the infrastructure are not necessarily the companies earning the best returns.

Hyperscalers continue committing hundreds of billions of dollars to AI data centers, chips, networking, and power.

But suppliers of memory, semiconductors, and hardware are collecting revenue first while the largest AI investors wait for those massive capital expenditures to translate into durable profits.

Credit markets are also flashing warning signs.

SpaceX’s recent $25 billion bond offering quickly traded below its issue price, leaving early buyers with substantial paper losses and highlighting reduced investor appetite for richly valued growth stories.

Taken individually, none of these developments proves the AI boom is over.

Taken together, they point to a broader shift.

The conversation is changing from **”Who is spending the most on AI?”** to **”Who is actually earning an acceptable return?”**

That is a very different market.

Bull markets reward ambition.

More mature markets demand results.

Wall Street appears to be moving from the first phase to the second.