New Delhi, Aug. 27 -- The rapid expansion of artificial intelligence investment faces several potential fault lines, including rising debt-financed spending, circular financing arrangements and the emergence of cheaper open-weight models, according to 360 ONE Asset's August 2026 Panorama report.

While the report has not declared that the AI boom is a bubble but has highlighted vulnerabilities on both the demand and supply sides of the value chain that could trigger an unwind.

AI infrastructure spending by US hyperscalers and other AI companies continues to grow at a strong pace and is increasingly being financed through debt, the report said and that this could transmit vulnerabilities in the AI buildout into credit markets.

The risks ...