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In a Financial Times column asking whether markets are ready for an AI bust, Martin Wolf draws on "Financing the AI Buildout" by Columbia Business School professor Stijn Van Nieuwerburgh. The paper estimates that AI buildout spending will average 3.6% of U.S. GDP from 2025 to 2032, more than the railways or highways in their day. It also warns that as big tech spending outruns cash flow, more of the financing is moving into private credit with little disclosure, and that this structure "can transmit and amplify" the risks.
