The pace of artificial intelligence investment has brought comparisons to previous bubbles, such as the dot-com boom of the late 1990s. With capital commitments running into the hundreds of billions of dollars and headlines questioning the sustainability of AI spending, investors are rightly asking whether today’s enthusiasm is getting ahead of underlying fundamentals.

We believe today’s buildout is fundamentally different. Unlike the dot-com era, when highly leveraged companies built infrastructure ahead of demand, today’s investment is driven by well-capitalized, investmentgrade counterparties—hyperscalers, corporates and sovereigns—and is increasingly supported by long-term contracted demand. As with any era-defining industrial transformation, success will be determined by disciplined allocation, rigorous underwriting and prudent risk management.