Bloomberg: AI Bubble Risks Rising as Debt Balloons — Hyperscaler Capex Approaches 100% of Operating Cash Flow, Amazon Projected to Run Negative Free Cash Flow in 2026

Bloomberg's AI Race newsletter flags mounting systemic risk as hyperscaler capital expenditure surges toward levels consuming nearly 100% of operating cash flows — historically around 40% — with Amazon projected to generate negative free cash flow of $17–28 billion in 2026, the first time in its modern history. AI-related bond issuance is on pace to exceed $570 billion in 2026, roughly four times the 2025 pace, as investors increasingly fund AI buildout via debt rather than earnings. The newsletter warns that if AI revenue fails to steepen before leverage unwinds, the resulting credit-spread shock could destabilize hundreds of billions in future refinancing.