The AI spending spree risks an extended “investment bust” that could imperil the global economy, a report warned Sunday.
The Bank for International Settlements, which advises the world’s central banks, wrote in its annual report that lackluster returns on AI investment from tech giants — which are pouring billions into the sector — could trigger a sudden reduction in financing.
The scale of the AI boom, the report showed, has dwarfed past bubbles, including the spread of railways and the internet.
The warnings add to longstanding concerns over the sustainability of AI investments; last week saw a major tech stock selloff, while OpenAI is reportedly considering delaying its IPO in part over concerns that investors won’t be eager for its shares.
