Dr Paul Kadoski predicts credit-fuelled AI build-out could hit $10tn

What was said

"So the bubble is this vast over supply of something largely fueled now by credit which in turn will lead to massive business failures and write down of assets and all of that credit has spread through the economy. It's inside of insurers, inside of private credit, it's inside of sovereign wealth funds and we're on the order of you know trillions of dollars now and it's probably going to hit 10 trillion before it's done."

Dr Paul Kadoski predicts the current AI build-out resembles past investment waves that ended in overcapacity and asset write-downs. He argues funding is increasingly credit-fuelled and widely held across insurers, private credit and other investors, making markets more fragile if spending reverses.