Investors Warn of Financial Risks Amid Rapid AI Data Center Expansion

Prominent investors Michael Burry and Jim Chanos have expressed concerns about the rapid expansion and high spending on AI data centers by major technology companies. Burry warns that heavy investment may strain cash flows and lead to accounting practices that mask financial pressures, while Chanos highlights ambitious projects like space-based data centers as potential signs of over-optimism. Both caution that it remains uncertain whether current valuations represent a bubble, emphasizing the need for hindsight to assess risks accurately.