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Sequoia Capital

Data Centers: The Canary in the AI Hype Coalmine?

AI infrastructure is now a major driver of U.S. economic growth, but it's being financed through increasingly complex and risky financial strategies that echo the subprime mortgage crisis. As tech giants and startups rack up debt to fund data centers and cloud capacity far ahead of actual demand, experts warn of mounting systemic risk, unsustainable valuations, and potential fallout for both investors and local communities.

Oct 1, 2025

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Microsoft

Amazon

Oracle

Lambda

xAI

Alphabet

Meta

Crusoe

Fluidstack

Artificial Intelligence

NVIDIA

Sequoia Capital

CoreWeave

Material Tech

Material Tech equips investors with an integrated materiality analysis of the latest developments in digital and emerging technologies. Stay ahead of risks and opportunities with data-driven insights, deep dives, and expert perspectives.

The Material Tech Newsletter is a publication of Open Media and Information Companies Initiative (Open MIC), a non-profit working to foster greater corporate accountability in the deployment and use of digital technologies.

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