AI Infrastructure Capex Bubble and Fed Scrutiny

Fed officials are eyeing the AI investment frenzy, raising the risk of a liquidity crunch for overleveraged data center plays. The $1T lease burden, off-balance-sheet debt, and CoreWeave's $99B backlog vs $50B debt highlight the fragility. SpaceX/Tesla's $16.8B Terafab commitment underscores the energy bottleneck. A new thread reveals Google's AI existential threat from talent exodus to Jeff Dean's new venture and internal compute politics, challenging hyperscaler invincibility and adding a competitive dimension to the capex concentration risk.