Chris Wood warns of massive capital destruction in US as China challenges AI boom

Chris Wood warns of massive capital destruction in US tech as China's AI models processed 36.39 trillion tokens on OpenRouter versus 7.39 trillion for leading US models during the week ended July 19. Microsoft, Alphabet, Amazon and Meta are expected to spend a combined $1.57 trillion on capital expenditure over 2026 and 2027, reaching 92 percent of their forecast operating cash flow for 2026. Hyperscalers have raised $194 billion in investment-grade debt in 2026, with credit spreads widening and Oracle downgraded to BBB-, one notch above junk.