'Caution Is Warranted': Ed Dowd Warns Wall Street's AI CapEx Party Is Ending

'Caution Is Warranted': Ed Dowd Warns Wall Street's AI CapEx Party Is Ending Authored by Ed Dowd via 'Beyond The Narrative' substack, The signs are piling up faster than the hype can spin them. AI capex has been the rocket fuel for markets, but the second derivative is turning. Factors ending the party: Private credit stalled — flows reversing, redemptions surging, industry effectively paused. Enterprise demand cracking — ROI skepticism, token costs biting, data/alpha extraction backlash. Power constraints hitting hard — the grid can’t scale without massive, long lead time builds or dystopian reallocation. Open-source pressure — Chinese based...