An AI super-bull who just backed the Nvidia-Groq deal warns of a data center bust: 'We foresee a significant financial crisis'

A Groq investor said he’s ‘deeply concerned’ about the data center market

A Grok investor said he’s “deeply concerned” about the “speculative” data center market. Myung J. Chun / Los Angeles Times via Getty Images A Groq investor said he’s “deeply concerned” about the “speculative” data center market. He said AI has spurred “too many business models with no realistic margin expansion.” The number of data centers in the US has nearly quadrupled from 2010 to the end of 2024. A major Groq investor said data center devel…

A Groq investor said he's 'deeply concerned' about data center market

A Grok investor said he's "deeply concerned" about the "speculative" data center market.Myung J. Chun / Los Angeles Times via Getty ImagesA Groq investor said he's "deeply concerned" about the "speculative" data center market.He said AI has spurred "too many business models with no realistic margin expansion."The number of data centers in the US has nearly quadrupled from 2010 to the end of 2024.A major Groq investor said data center development…

An AI super-bull who just backed the Nvidia-Groq deal warns of a data center bust: 'We foresee a significant financial crisis'

Alex Davis says third-party data-center developers will eventually be jilted by the hyperscalers they serve, and face a subsequent debt crisis.

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