Bubble warning? Bank of America warns the AI boom is running out of cash
Published on: Nov. 12, 2025, 11:01 p.m. | Source: The Economic Times
The AI boom is hitting a money wall. Bank of America warns tech giants are burning through cash as capital spending devours 94% of free cash flow, up from 76% last year. Meta borrowed $30 billion for new data centers, while Oracles debt nears $96 billion. Firms like Google, Amazon, and Microsoft are funding AI with loans, not profits. Rising rates add pressure. BofA says the AI investment wave is reaching a tipping point, risking a slowdown if cash returns dont catch up.
