Business · 2h ago
BIS Warns AI Investment Frenzy Risks Global Economic Bust
The Bank for International Settlements warns that hyperscaler AI spending mirrors dotcom-era excess, with capital expenditure outpacing revenue growth. The central bank for central banks cautions that a sudden correction could trigger a global recession. It urges regulators to monitor leverage and concentration risks in AI infrastructure financing.
Meridian48 take
The BIS's dotcom comparison is apt, but the real risk may be slower-than-expected AI adoption rather than a sudden crash.
Read the full reporting
How the AI bubble could pop and take down the global economy, according to the BIS →
The Register
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