The A.I. Boom Is Driving the Economy. What Happens if It Falters?

The New York TimesSaturday, November 22, 2025 at 10:01:42 AM
The A.I. Boom Is Driving the Economy. What Happens if It Falters?
  • The recent surge in artificial intelligence (A.I.) is significantly benefiting companies involved in building data centers, overshadowing weaknesses in other sectors. This boom is characterized by increased investments and optimism surrounding A.I. technologies, which are driving economic growth and reshaping market dynamics.
  • The focus on data centers is crucial as they serve as the backbone for A.I. operations, leading to substantial revenue forecasts from companies like Arm Holdings. This trend indicates a robust demand for infrastructure that supports A.I. applications, which is vital for sustaining growth in the tech industry.
  • The broader implications of this A.I. boom include rising energy demands and potential concerns about market saturation. While some investors remain optimistic about the future of A.I. and its infrastructure, others warn of challenges, such as the sustainability of growth and the risk of an A.I. bubble, highlighting the need for careful management of resources and investments.
— via World Pulse Now AI Editorial System

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KKR’s Raj Agrawal Warns of Froth in AI Investment Stampede
NegativeFinancial Markets
Raj Agrawal of KKR & Co. has expressed concerns regarding excessive enthusiasm in investments related to artificial intelligence and data centers, indicating that the firm is adopting a selective approach to mitigate potential risks. This caution comes amid a broader market sentiment that suggests a possible overvaluation in AI-related assets.