In 2008, subprime mortgages triggered the global financial crisis. Now, the "subprime" of AI has emerged. Its name is Oracle. Wall Street is now labeling it with a fatal one: "AI subprime." Look at what's happening in the bond market: Oracle's 5-year CDS spread hit a record high of 343 basis points, and default insurance costs have nearly tripled since the beginning of the year. CoreWeave, the computing power giant, saw its corporate bond yields surge from 10% to 15%, implying a 60% probability of default. Rating agencies are already pricing it as junk bonds. Why have they become "subprime"? Because they used their expected computing power revenue for the next decade or so as collateral to borrow money recklessly to build data centers. Their debt exceeds hundreds of billions, while their free cash flow is negative by tens of billions. As long as AI demand continues to surge, the game of borrowing new money to repay old debts can continue. What were the lessons of 2008? The subprime mortgage crisis never erupted because no one wanted to buy houses, but because rising interest rates made it impossible for borrowers to repay their loans. Now, high oil prices are fueling inflation, and US Treasury yields are stuck at 5%. If the bond market stops lending to Oracle, or if interest rates become so high that they eat up all profits, the bubble will burst. Oracle's recent stock price plunge is the market already voting with its feet on AI subprime. When Wall Street sells Oracle's debt to the market like it did with the subprime mortgages, you should understand: The AI bubble didn't necessarily start with Nvidia's chip price cuts. It could very well start when Oracle suddenly can't issue any new debt. The seeds of this crisis have already been sown in the bond market. As for when the global financial crisis will erupt, it's likely around March 2027.