AI's Capital Surge: Boom or Budget Squeeze?

Soumaya Keynes argues the AI funding binge is real, with AI firms taking a growing share of VC and debt markets and data‑centre demand rising, but evidence of crowding out in the wider economy is inconclusive: BIS data shows AI‑ready economies are investing more, Goldman Sachs finds only a small drag on non‑AI borrowers, and any crowding-out risk remains modest for now, though longer‑term debt and energy constraints could reshape capital allocation.