The AI boom, fueled by massive capital expenditures, is showing signs of slowing due to several critical factors. Private credit markets, crucial for financing AI data center buildouts, are experiencing significant stress with surging redemptions and paused flows. Enterprise demand for AI tools is also weakening as companies grapple with the true return on investment and escalating costs. Power constraints represent a major physical limitation, as existing electrical grids cannot support the projected demand without extensive and time-consuming upgrades. The rise of powerful and significantly cheaper open-source AI models, like Kimi K3, is commoditizing AI technology and pressuring the pricing of proprietary frontier models. These factors collectively suggest that the current AI-driven market exuberance may be unsustainable. The concentration of market value in semiconductor stocks, funded by debt to unproven business models, further points to potential cyclical risks. Physical limitations and competitive pressures are forcing a reckoning on AI's timelines and pricing. The combination of tightening credit, infrastructure limitations, and commoditization indicates a potential slowdown in AI capital expenditures. Caution is advised as market signals suggest a swift repricing event could be approaching.