An AI investment frenzy could threaten the global economy by turning into a prolonged “investment collapse,” the Bank for International Settlements warned in its annual report released on June 28.
The BIS, which advises the world’s central banks, said funding could shrink sharply if big tech companies pouring billions of dollars into AI fail to deliver results commensurate with their investment.
The BIS report said the scale of the AI boom has surpassed past bubbles such as railway expansion and the internet bubble.
Semafor reported that the warning lends weight to existing concerns about the sustainability of AI investment.
Large technology stocks were heavily sold off last week, and OpenAI is reported to be considering delaying an IPO over concerns that investors may not be active in the stock.
Chi-gyu Hwang
delight@d-today.co.kr