A Bank of America survey reveals that the risk of an artificial intelligence bubble has, for the first time, surpassed geopolitical worries as the primary concern among credit investors.

New constructions delayed or cancelled, raising questions about US’s ability to expand infrastructure to support boom Cancellations and delays of new US datacenters have increased as the artificial intelligence boom runs up against a slate of issues, including supply chain snags, energy shortages and tariff-induced restraints. Grassroots opposition from local communities has also derailed some plans, and some investors have grown wary of datacenters amid fears of an AI bubble. Continue readi...

An article analyzes Taiwan Semiconductor Manufacturing Company (TSMC) stock performance, discussing its current soaring value and future trajectory based on options data, amidst concerns of an AI market bubble.

Google executives meet with officials at a Google data center in Midlothian, Texas. Fortune via Reuters Connect Northern Virginia is home to the world's largest data center market. That could soon change, as Big Tech ramps up data center construction across the US. West Texas, Tennessee, Wisconsin, and Ohio are emerging as key markets. The old saying "Everything is bigger in Texas" now applies to data centers. The Lone Star State is on track to unseat Virginia as the world's largest data center market by 2030, new research from Jones Lang LaSalle shows. The shift indicates how drastically the data center development boom has reshaped the US's digital infrastructure map and the landscape as a whole. Amazon, Microsoft, Google, and Meta plan to spend more than $600 billion on AI infrastructure expansion in 2026 — a number so dizzyingly high that Wall Street is on high alert for signs of an AI bubble. More than half of all data center construction in the US now happens outside the industry's traditional hubs, according to JLL's North America Data Center Report — Year-End 2025. Tennessee, Ohio, Wisconsin, and Texas are now considered the top emerging markets for data centers. Texas alone has 6.5 gigawatts of data center capacity under construction. That amount of power is roughly equivalent to more than three Hoover Dams or over 17,000 Tesla Model 3s when using the US Department of Energy's standard, and it accounts for about one-fifth of the 35 gigawatts of data center capacity the US added to its pipeline. That 35 gigawatts is roughly equivalent to the annual electricity consumption of the UK or Italy, and adding it would nearly double the existing data center capacity in the US, according to JLL. Part of Texas's appeal is its sprawl. The state houses some of the most ambitious data center projects in the country. Oracle and OpenAI's flagship Stargate data center is in Abilene, Google is planning a $40 billion expansion in West Texas, and Meta is building a massive new site in El Paso, just to name a few. Texas also has abundant energy resources, which is good news for data center developers. The AI boom has driven electricity demand to new heights and strained the nation's power grid. In Texas, several data centers — including Stargate — are being built alongside on-site power plants. Northern Virginia has been the data center industry's central hub for more than 15 years, going back to the early days of cloud computing. That has changed rapidly as Big Tech spreads out across the country in search of available power, cheap land, and the best tax incentive packages for the coming wave of AI data centers. Have a tip? Contact this reporter via email at ethomas@businessinsider.com or on Signal at 929-524-6964. Read the original article on Business Insider

Concerns about a potential bubble in the artificial intelligence sector are prompting the creation of new financial derivatives. These derivatives aim to address the risks and opportunities associated with the rapidly expanding AI market.

Discussions are emerging regarding the potential for an 'AI bubble' and its broader implications for credit markets, signaling growing caution among financial observers.

A Bank of America survey reveals that concerns over an 'AI bubble' have emerged as the primary fear within the credit market.

Experts are cautioning against the 'buy the dip' investment strategy, particularly in the current AI market, with some considering the potential bursting of an AI bubble as the biggest risk, surpassing inflation or military conflicts.

Vinod Khosla says stock prices aren't the way to evaluate AI bubbles. Mert Alper Dervis/Anadolu via Getty Images Vinod Khosla says the rise of AI might warrant steeper taxes on capital and none for most workers. The billionaire VC wrote on X that AI displacing workers could shrink the labor part of the economy. Khosla wrote that some popular tax breaks were "special interest goodies" and not "true capitalism." If artificial intelligence eliminates millions of jobs, it might make sense to scrap income taxes for the vast majority of Americans and target capital instead, Vinod Khosla says. "AI will transform economies and need a rethink of capitalism & equity," the billionaire venture capitalist wrote in an X post on Monday. "Labor portion of economy (vs capital) will decline sharply. Should we eliminate preferential treatment of capital gains tax and equalize to ordinary income?" Khosla — who cofounded Sun Microsystems and made the first VC investment in OpenAI — was making the point that AI replacing labor on a grand scale might warrant greater taxes on assets such as stocks and real estate. The veteran financier, who founded Khosla Ventures after leaving Kleiner Perkins, attached a video highlighting some of the jobs that could be taken by AI, from accountants and therapists to truck drivers and chip designers. AI will transform economies and need a rethink of capitalism & equity. Labor portion of economy (vs capital) will decline sharply. Should we eliminate preferential treatment of capital gains tax and equalize to ordinary income? 40% of capital gains taxes are paid by those with… pic.twitter.com/7oSA9xj5Ko — Vinod Khosla (@vkhosla) February 16, 2026 Khosla said in a follow-up post that ramping up taxes on capital would generate so much revenue that the government could scrap taxes for most of the roughly 150 million US taxpayers. "Could easily eliminate bottom 125 million taxpayers from the tax rolls and be revenue neutral at the same time with a capital gains tax equal to ordinary income and a few other tweaks," he wrote. He added that tax breaks such as carrying over tax losses and tax-free borrowing against unrealized gains — which he called a "true abuse!" — are "special interest goodies inserted by lobbyists and campaign contributions, not true capitalism." Khosla didn't address common critiques of higher taxes, including that they can discourage entrepreneurship and investment, that collecting them can be tricky, and that wealthy people may leave the country to avoid them. Khosla has previously underscored that the advent of AI may require sweeping policy changes. He estimated in late 2024 that in 25 years' time, AI could be doing 80% of the work in 80% of all jobs, and universal basic income might be needed to compensate for job destruction. "As AI reduces the need for human labor, UBI could become crucial, with governments playing a key role in regulating AI's impact and ensuring equitable wealth distribution," he wrote on his firm's website. Khosla isn't alone in predicting AI will change the fabric of society. Elon Musk suggested late last year that work could become "optional" and money might become "irrelevant" if advances in AI and robotics generate abundant resources for all. Moreover, the Tesla and SpaceX CEO recently said that retirement savings may not be needed in 10 or 20 years, as everyone might have "whatever stuff they want." However, skeptics such as Michael Burry of "The Big Short" fame have cautioned the AI boom is a speculative bubble, tech companies are overinvesting in microchips and data centers that will quickly become obsolete, and true AI is further away than many think. Read the original article on Business Insider

New research suggests that Apple may be insulated from potential 'AI bubble' fears, indicating a more stable position for the tech giant in the evolving AI market.

Big tech stocks are losing billions as fears over AI spending hit valuations, leading to concerns about an AI bubble and the creation of new derivatives.