Recent sharp sell-offs in AI-related stocks, including Nvidia and Meta, stem primarily from mounting concerns over the sustainability of massive infrastructure spending and rising debt costs for data center operators. Companies like CoreWeave face borrowing rates exceeding 16 percent amid questions about returns, while Meta raised its annual capex guidance to $135–145 billion and plans new share issuance to fund AI buildout. Growth at frontier labs such as Anthropic has slowed, and open-weight models from Meta alongside competitive releases from DeepSeek are pressuring pricing for large language models. Traders are watching upcoming earnings and any further capital raises for signs of whether overcapacity risks will trigger a broader correction in the sector.