Circular financing is inflating demand signals and creating systemic risk.
The massive energy requirement for AI data centers is a critical, unresolved bottleneck.
A significant gap exists between the trillions in capital expenditure and current AI revenue generation.
Falling GPU rental prices suggest early signs of a supply/demand mismatch and potential over-investment.
Opportunities Identified
Mega-cap tech companies have strong balance sheets and over $200 billion in annual free cash flow to fund the build-out.
AI is enabling genuine scientific breakthroughs, such as Nobel Prize-winning work in protein folding, indicating transformative potential beyond consumer slop.
Current valuations, while elevated, are not as extreme as in past bubbles like the dot-com era, and key companies have substantial earnings.
Investment deals are increasingly structured with performance-based clauses, providing a degree of caution and risk management.