The Bank for International Settlements (BIS) has flagged a potential bubble in AI investments, likening the current surge in capital expenditure by hyperscalers to the dotcom mania of the early 2000s. BIS cautions that excessive spending on AI infrastructure and development could lead to significant economic risks if the bubble bursts.
The report highlights the rapid increase in AI-related investments, driven mainly by large technology firms, and warns of the potential global economic fallout from a sharp correction in this sector.
