Prof G Markets · Friday, July 31, 2026
Jim Chanos expressed skepticism about the AI market, pointing to circular financing, an explosion in AI debt, and debt being moved off hyperscaler balance sheets into SPVs as significant concerns. He believes the current euphoria around AI might be an overestimation.
“There are several things going on. There's the circular financing, there's the explosion in AI debt, there's the fact that the debt appears to be increasingly going off the balance sheets of the hyperscalers and stuffing into these SPVs.”
“I mean, there's a lot going on to be sort of skeptical of, which things do you see as the largest concerns in AI right now?”
“He has argued that today's AI boom may be an even bigger bubble than the dot-com era.”