Global markets were already fragile. Big AI bets could break them.

Global markets were already fragile. Big AI bets could break them

Governments saddled with high debt are in a weak position to fight a new crisis

Is the AI boom losing steam? Global economy faces growing risks

Global financial markets face mounting pressure from geopolitical conflicts, rising government debt and trade tensions, raising concerns about the resilience of the global economy. While the AI investment boom has driven stock markets to record highs and supported growth expectations, rising borrowing costs, inflation, weakening currencies and the prolonged Iran war threaten to undermine investor confidence and expose deeper vulnerabilities.

Analysis-Global markets were already fragile. Big AI bets could break them  - Regional Media News

By Dhara Ranasinghe and Amanda Cooper LONDON, Nov 3 (Reuters) - Financial markets are struggling under the weight of wars, soaring sovereign debt and trade tensions, with signs of trouble showing across the world - from the selloff in Japanese and French bonds to plunging [...]

Global markets were already fragile. Big AI bets could break them.

So far, the multitrillion-dollar spending splurge on artificial intelligence has propelled stock markets to record highs.

AI’s investment boom is becoming a test of global financial stability

The global economy’s dependence on artificial intelligence investment is becoming a source of vulnerability as well as growth. Spending on chips, data centres and power infrastructure has supported corporate earnings and helped markets withstand expensive energy, trade friction and rising debt costs. Investors are now questioning whether that support can continue at the scale anticipated and what happens if confidence weakens while governments a…