Financial Institutions Sound Alarm on Potential AI Bubble Burst

Bank of England warns AI stock bubble rivals 2000 dotcom peak

AI bubble talk is in the air, and among the chorus of voices warning of an AI-fueled market bubble (which includes OpenAI CEO Sam Altman and Amazon's Jeff Bezos) is the Bank of England, which warned on Wednesday that global financial markets could face a sharp correction if investor sentiment turns

The AI bubble is heading towards a burst but it won't be the end of AI

Economists, bankers and even the boss of OpenAI are warning of a rapidly inflating AI bubble. If and when it bursts, what will happen to the technological breakthroughs of the past few years? The hundreds of billions of dollars being spent on AI seem to have inflated a global financial bubble

Former Intel CEO Pat Gelsinger confirms the industry is in an AI bubble, but that a pop could be several years away -- 'We're displacing all of the internet and the service provider industry as we think about it today'

Pat Gelsinger says we're already in an AI bubble, but says it could be several years before anything bad happens. The former Intel CEO was asked during an interview on CNBC if we're in an AI bubble, stating, "There's a lot of leverage in the system, there's a lot of cash, but then there's a whole

Measuring risk in the AI financing boom

The artificial intelligence boom is entering a new and riskier phase. Global capital expenditure on chips, data centres and cloud infrastructure has, so far, been driven by hyperscalers, funded largely through their vast internal cash balances. But the projected scale of computing power needed for

Leading financial institutions are worried about a looming AI bubble

Both the (IMF) and the are warning of an AI bubble that could burst sooner than later, citing soaring valuations and stock prices. Speaking at the Milken Institute in Washington DC, Kristalina Georgieva, managing director of the IMF, that "uncertainty is the new normal and it is here to stay" and

Bank of England warns of 'sharp market correction' if AI bubble bursts

Bank of England, the Royal Exchange and the statue of the Duke of Wellington in the City of London on 19th February 2025 in London, United Kingdom. The Bank of England on Wednesday warned that the risk of a "sharp market correction" has increased, noting that stock market valuations appear

Is the AI Conveyor Belt of Capital About to Stop?

The American economy is little more than a big bet on AI. Morgan Stanley investor Ruchir Sharma recently noted that money poured into AI investments now accounts for about 40% of the United States’ GDP growth in 2025, and AI companies are responsible for 80% of growth in American stocks. So how

Bank of England Warns of an AI Bubble Burst

The central bank of the United Kingdom is worried about an AI bubble burst. "On a number of measures, equity market valuations appear stretched, particularly for technology companies focused on Artificial Intelligence (AI)," the bank's financial policy committee said, according to a record of its

Alarms bells ring as Bank of England warns of 'sharp market correction' when AI bubble bursts

If this bursts, devastating affects could ripple through the economy Mutterings continue to swirl about "an AI bubble" - Jeff Bezos has admitted it, Sam Altman has admitted it, and now, financial institutions are beginning to sound the alarm over the potential catastrophic crash the economy faces

What could burst the AI bubble?

Some of the world's biggest tech firms have soared in value over the last year. As AI evolves at pace, there are hopes that it will improve lives in ways that people could never have imagined a decade ago -- in sectors as diverse as health care, employment and scientific discovery. OpenAI is now

Bank of England Warns of Impending AI Disaster

The Bank of England has sounded the alarm, warning of an intensifying risk of a "sudden correction" in global financial markets driven by the spending frenzy on artificial intelligence. As Reuters points out, it's the institution's clearest warning yet that we could be on the precipice of an AI

Most US Growth Now Rides on AI -- And Economists Suspect a Bubble - Decrypt

Elon Musk's xAI raised $20 billion for a new data-center, with bulls and bears debating whether AI is a bubble or not. What happens when artificial intelligence becomes both the economy's primary engine and its potential Achilles' heel? We may be about to find out. Harvard economist Jason Furman

Ex-Intel CEO Pat Gelsinger says 'of course' we're in an AI bubble but it won't end 'for several years'

'We're hyped, we're accelerating, we're putting enormous leverage into the system.' Ex-Intel CEO Pat Gelsinger spoke to CNBC earlier this week, ruminating on a variety of topics, including AI. When asked whether he thought the tech industry was in the middle of an AI bubble, he responded: "Of

AI is booming -- and the bust could be even bigger

In the 1960s, IBM embarked on what Fortune called the $5 billion gamble. It was a bet-the-company investment on a scale nobody had seen before. The payoff was the legendary System/360 mainframes, which revolutionized computing and set the stage for two decades of IBM dominance. That $5 billion

New reports add to concerns about potential AI bubble - SiliconANGLE

A series of reports published this week has raised new concerns about the potential risks of the artificial intelligence boom. The Bank of England warned today that the likelihood of a "sharp market correction" has increased. One of the reasons is that "on a number of measures, equity market

Ex-Intel CEO CEO Pat Gelsinger says 'Of course' the tech industry is in an AI bubble

TL;DR: The current AI boom is seen by experts like ex-Intel CEO Pat Gelsinger as a significant industry shift with vast investments and high valuations, resembling a potential bubble similar to past tech crashes. Despite hype, widespread economic benefits are still emerging, and the AI expansion is

Is there an AI bubble? Financial institutions sound a warning

LONDON -- LONDON (AP) -- Lingering doubts about the economic promise of artificial intelligence technology are starting to get the attention of financial institutions that raised warning flags this week about an AI investment bubble. Officials at the Bank of England on Wednesday flagged the

When will the AI bubble burst? As OpenAI signs yet another megabucks deal with Broadcom, can anyone make sense of the trillions of dollars involved?

A hundred billion here, a hundred billion there, pretty soon you're talking about real money. So, OpenAI has signed yet another megabucks deal, this time with Broadcom and involving 10 gigawatts of what's described as OpenAI designed "custom AI accelerators." From a technological perspective, the

Why experts are worried about an AI bubble in the stock market

A growing chorus of voices is warning there could be an artificial intelligence (AI) bubble, as companies whose fortunes are closely tied to the technology see their valuations skyrocket. High-profile figures, from OpenAI CEO Sam Altman to Amazon founder Jeff Bezos, have suggested in recent months

Is There an AI Bubble? Financial Institutions Sound a Warning

LONDON (AP) -- Lingering doubts about the economic promise of artificial intelligence technology are starting to get the attention of financial institutions that raised warning flags this week about an AI investment bubble. Officials at the Bank of England on Wednesday flagged the growing risk

World's top banker says the AI bubble will burst, and shedloads of money 'will probably be lost'

"AI in total will pay off... cars in total paid off, and TVs in total paid off, but most people involved in them didn't do well." Jamie Dimon, the head of JP Morgan and widely regarded as the world's top banker, has given a wide-ranging interview to the BBC. Metal Gear fans rejoice: The full thing

AI gold rush turning to panic? Experts warn the bubble could soon explode

AI investment is growing fast, but experts warn of a possible bubble. Companies like OpenAI, Nvidia, and AMD are making huge deals and building large AI data centres. While some see risks of overvalued companies and financial problems, others believe AI infrastructure will create new products and

BoE issues warning over potential AI bubble

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The latest report from the central bank's Financial Policy Committee, warns that valuations of stocks "appear stretched, particularly for technology comp[anies

Is there an AI bubble? Financial institutions sound a warning - The Korea Times

LONDON (AP) -- Lingering doubts about the economic promise of artificial intelligence technology are starting to get the attention of financial institutions that raised warning flags this week about an AI investment bubble. Officials at the Bank of England on Wednesday flagged the growing risk

AI firms vulnerable to sharp drop in valuations, Bank of England warns

(Alliance News) - Tech firms are vulnerable to the risk that soaring valuations will drop sharply amid potentially "disappointing" progress around artificial intelligence, AI, the Bank of England has warned. The risk of a "sharp correction" in the financial markets has increased, the Bank's