According to Edward Dowd, the AI sector shows a severe capex-to-revenue mismatch, with companies announcing large future funding despite weak current revenues, signaling fragility for AI-exposed equities and related crypto narratives if cash flows do not catch up (source: Edward Dowd on X, Oct 14, 2025). He further asserts that projected data center power and water demands are impractical and politically untenable, raising risk of policy or permitting constraints that could slow AI infrastructure timelines (source: Edward Dowd on X, Oct 14, 2025). Dowd also claims OpenAI CEO Sam Altman said the economy is sound while moving to allow adult erotica content, which he interprets as a scramble for revenues, a late-cycle sign for the AI trade (source: Edward Dowd on X, Oct 14, 2025). Trading takeaways: consider reducing exposure to crowded AI beneficiaries and AI-themed tokens, prioritize firms with positive free cash flow versus capex, and monitor utility policy headlines and financing disclosures for execution risk, aligning with Dowd’s warning (source: Edward Dowd on X, Oct 14, 2025).