Market research platform Bull Theory said on Wednesday that a Republican loss in the November midterms could be the “trigger” that bursts the AI bubble.

AI Becoming More Dependent on External Financing?

In an X post, Bull Theory argued that the AI industry’s growth is heavily reliant on capital spending, with major hyperscalers, including Amazon.com Inc. AMZN and Alphabet Inc. GOOGL, expected to invest nearly $800 billion in 2026, up 10x from 2019.

Bull Theory, citing JPMorgan research, said AI spending is projected to consume 93% of hyperscalers’ cash flow in 2026, up from 33% in 2023.

Additionally, Hyperscalers are projected to issue about $250 billion in bonds in 2026, up from roughly $121 billion a year earlier.

“So AI is…