Scarlet Fu

Everyone's a stakeholder, so it feels like everyone's kind of incentivized to make sure that whatever happens stays an idiosyncratic story and nothing more.

Let's talk about something that may or may not be worrying to you, which is what's happening in big tech.

They are investing tens of billions of dollars to build out data centers to boost their AI capabilities.

They announced partnerships where they take equity sticks in each other and buy stuff from each other.

Is this so-called circular funding a problem in and of itself?

Does it raise your antenna?

It's a red flag.

I mean, is circular financing funding an unmistakable sign of market overexuberance?

So how do you hedge against this?

You've pointed out that the AI-driven capital spending boom we're seeing today is comparable to the internet build-out in the late 90s.

So when companies start tapping the brakes a little bit, pulling back on their spending by just a bit, how quickly will that show up in earnings and margins given where we are in this bull market?

And it's not just things tied to AI.

I look at the $55 billion takeout of Electronic Arts marking the biggest LBO ever.

It's deal-making like it's 2007.

Going beyond the order books of the big tech companies, as an inherent skeptic, what are you watching for to get a sense of how and when the music stops?

Okay.

Well, eventually it will be.

As of now, it hasn't gotten there yet.

Jim, stay with us because we're going to discuss a lot more, including some of your trades.

This is Bloomberg.