The five hyperscalers' spending exceeds $1 trillion, BIS warns of AI bubble risks On June 28, BIS released its annual economic report, stating that the AI capital expenditure of the five hyperscalers is expected to exceed $1 trillion between 2025 and 2026. Part of this investment relies on debt financing, with growth rates already outpacing some companies' earnings and free cash flow. If the productivity gains and profitability returns brought by AI fail to meet market expectations, there could be risks of overinvestment similar to past tech cycles, amplifying financial market volatility through complex financing structures. Previously, the Bank of England (BoE) and the International Monetary Fund (IMF) also warned of AI bubble risks, noting that valuations of AI-driven tech stocks are already at high levels. If future AI applications or profit growth fall short of expectations, the market could face rapid adjustments.