Big Tech Just Admitted the AI Bubble Is Real [kTkOydf67Q7]
Big Tech has spent two years telling us AI compute is scarce. Then Meta was reported to be preparing to sell its spare capacity — and $200bn was wiped off the companies that sell compute in a single day. Also the bond market points to bigger problems. Hyperscaler credit spreads are widening fast, Alphabet has just posted its first negative free cash flow since 2004, and Nikkei research estimates the big five now carry around $1.7 trillion in off-balance-sheet obligations. Add into the mix cheaper Chinese open-weight models undercutting premium AI services, someone is going to get burnt This video looks at why the AI build-out increasingly resembles 2008 rather than 2000 — a credit story, not just an equity story. And why this structure doesn't need demand to collapse. It just needs growth to slow down. 0:00 AI bubble 2:09 Alphabet Growth 3:14 Chinese AI 4:02 Off Balance Sheet Debt 5:03 What Happens Next 8:31 AI Bull Case 📊 Sources WSJ – China vs US AI model costs TechCrunch – Google justifies its massive AI spending with a booming cloud business WSJ – Investors zero in on runaway tech spending, putting dent in AI trade Fortune / Yahoo Finance – Tech execs admit AI is a bubble Bloomberg – Big Tech debt flood is taking over risk in the credit market Also: Bloomberg reporting on Meta's compute business (1 July 2026); Nikkei research on off-balance-sheet obligations; Alphabet Q2 2026 results; Meta SEC filings; Matt Scherer, Open Markets Institute. ► Please SUBSCRIBE! ABOUT ----------- ► was founded in 2006 by Tejvan Pettinger, who studied PPE at Oxford University and teaches economics. He has published several economics books, including: ► Economic Short Cuts ► 50 Essential Economic Ideas ► Cracking Economics. ► What Would Keynes Do? Amazon ► Economics Without the Boring Bits