PANews
PANews|Jun 28, 2026 13:53
["The 'Central Bank of Central Banks' Issues Warning: AI Trillion-Dollar Investment Frenzy May Evolve into an 'Investment Slump'"] According to the Financial Times, the Bank for International Settlements (BIS) has warned that the massive spending spree by major tech companies in the field of artificial intelligence could end in a disruptive and prolonged "investment slump," thereby unsettling financial markets and harming global economic growth. In its annual economic report released on Sunday, the BIS outlined the risks associated with the "current AI frenzy," stating: "If returns prove disappointing, it could trigger a sudden contraction in financing, turning the capital expenditure boom into a prolonged investment slump, with potential ripple effects on financial conditions." This warning comes at a time when concerns are mounting over the scale of equity and debt financing driving the AI revolution and the resulting turbulence in global markets. Tech groups have been flocking to global credit markets, taking advantage of corporate credit spreads near their lowest levels this century, raising hundreds of billions of dollars to fund AI projects.
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