Overview
- World Economic Forum president Borge Brende named artificial intelligence, crypto and debt as possible bubbles during remarks in São Paulo, warning that AI’s productivity promise could also displace back-office jobs.
- Gary Marcus said AI is already a bubble and warned of severe fallout if it bursts, citing OpenAI’s roughly $1 trillion valuation versus a recent $11.5 billion quarterly loss and pointing to “circular” deals among major AI firms.
- The Bank of England’s Financial Policy Committee cautioned in October that the risk of a sharp correction linked to AI sentiment has risen, with material spillover risks to the UK financial system.
- A BofA Global Research survey reported that 54% of fund managers believe AI stocks are in a bubble, even as many retain exposure to the sector.
- Countering the gloom, some economists and industry leaders argue the heavy spending on chips and data centers reflects a durable buildout, though they acknowledge uncertainty over eventual winners and execution constraints.