"I start to get worried when people are building data centers on spec," said Alibaba Chairman Joe Tsai.

Alibaba Group Holding Ltd. Chairman Joe Tsai warned of a potential bubble forming in data center construction, arguing that the pace of that buildout may outstrip initial demand for AI services.

For years now, experts have warned of an AI bubble that's ready to burst. Companies continue to pour tens of billions of dollars into building out massive data centers to meet the demands of increasingly power-hungry AI models.