Dua, salaam, namaste and sat sri akaal, all tech-ila-ites! We're back with another serving of AI madness.

I am not having an identity crisis. I am just trying to follow Nagarjuna's Middle Way, or Madhyamaka, if you want to sound fancy. What does a Buddhist philosopher have to do with AI stocks? Arre, patience! We'll get there.

For a while, the excitement around artificial intelligence seemed to be enough to keep investors hooked. Companies were spending big to build their AI capabilities, and the promise of the technology gave everyone plenty of reasons to be optimistic.

But the mood is getting a little more complicated now. Investors are beginning to ask a tougher question: When do the returns catch up with all that spending?

That doesn’t necessarily mean the AI story is falling apart. It simply means the market wants a clearer picture of the economics behind all the excitement.

Take Meta. The company has $825 billion in future commitments. Google, meanwhile, is struggling to get enough computing capacity to meet demand. The AI race is becoming a rather expensive game, and even the biggest players are scrambling to keep up. The catch? All that spending eventually needs to deliver returns.

And Wall Street seems to be losing a little patience. Technology stocks have come under pressure, some investors are moving their money into the relative safety of US government bonds, and investors are becoming more cautious about taking risks.

“It came with a vengeance — we’re seeing a flight to quality bid of Treasuries inverted to the AI trade,” said Blazek, who is the $630 billion firm’s co-chief investment officer of multi-asset, according to Bloomberg.

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