Bond sales are pretty normal for companies, AI or not. Leverage is in very low ratios compared to the dotcom era.

Much of the dotcom era telecom expansion depended on debt and projected future demand, but the resulting networks were so overbuilt that only about 2% of North American long-distance capacity was being used. Falling prices left numerous operators unable to service their debts. Today’s AI expansion is led mainly by already-profitable companies with large existing revenues and cash flows. Microsoft alone generated $136B in operating cash flow during its 2025 financial year while spending $65B on capex. It held $95B in cash, compared with total debt of about $43B. That means a disappointing return on AI investment would reduce profits, cash reserves, and shareholder value, rather than making these companies insolvent.

I don't think Microsoft would fail if it all crashed. Nor would Google or Amazon as they all have alternate revenue streams.

It's the pure AI companies like OpenAI that will hit the wall.

However, the tech companies are increasing their debt enormously. That's the issue.