The competitive race to dominate artificial intelligence is driving technology giants to over-build computing capacity by roughly half again more than is economically efficient — and the same contest, financed with debt and circular equity ties, is quietly manufacturing the conditions for a sector-wide bust. That is the central argument of a new Bank for International Settlements (BIS) working paper that puts formal numbers on a warning the institution has been sounding for weeks.
The AI investment race is building its own bust, BIS paper warns
19
Jul