Leading technology companies including Meta, Alphabet, Oracle, Amazon, and Microsoft are increasing borrowing substantially to finance massive AI infrastructure expansions amid concerns over spending. AI infrastructure spending is estimated at $349 billion this year, but investor enthusiasm is cooling due to doubts about profitability and the high capital intensity of AI projects. The
AI industry's interconnected ecosystem, dubbed "
the Blob," involves major players like
Nvidia,
OpenAI, and
Google forming partnerships and investments, while the US government prioritizes
AI leadership despite safety concerns.