The Capital Wall: The AI Buildout Is Running Out of External Capital

The author argues that the AI buildout is facing a critical bottleneck as external debt and equity funding dries up for smaller neoclouds and infrastructure developers, while well-capitalized hyperscalers crowd out weaker borrowers. The piece highlights distress in credit markets, such as CoreWeave's falling bond prices, and examines the immense capital demands and funding challenges facing major players like SpaceX, Anthropic, and OpenAI. Open article →