Morning Call Sheet: AI boom accelerates as leverage risks build

• AI CapEx is translating into significant profitability, as evidenced by CoreWeave's strong earnings and gross margins.
• A 'price war' among AI model providers, driven by open-source models, is making AI more accessible and increasing demand for data centers, thereby prolonging the AI CapEx boom.
• Concerns are mounting over the opaque private credit market's involvement in financing AI, with warnings about potential leverage risks and the Fed's stance on supply-side inflation.

The discussion centers on the accelerating AI buildout, with experts debating its sustainability and potential risks. While strong profitability and increasing demand for AI infrastructure are highlighted, concerns about rising leverage in private credit markets and the Federal Reserve's monetary policy decisions are also raised. The overall sentiment suggests a continued AI boom, but with underlying financial risks.