Bank of England Warns Debt-Fueled AI Boom Could Unravel

Bloomberg TechnologyTuesday, December 2, 2025 at 8:52:07 AM
Bank of England Warns Debt-Fueled AI Boom Could Unravel
  • The Bank of England has issued a warning regarding the risks associated with a multi-trillion dollar spending boom in artificial intelligence infrastructure that is largely financed through debt. The central bank highlighted that current stock market valuations are 'materially stretched', raising concerns about the sustainability of this growth.
  • This warning is significant as it underscores the potential for a financial correction if the AI market fails to deliver expected returns, which could impact investor confidence and the broader economy.
  • The caution from the Bank of England aligns with growing skepticism among market analysts and investors about the inflated valuations in the AI sector, with various experts indicating that many companies may be overpaying for AI technologies, contributing to a potential financial bubble.
— via World Pulse Now AI Editorial System

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