<
https://www.techspot.com/news/109626-ai-bubble-only-thing-keeping-us-economy-together.html>
“
You have been warned: Warnings about the overinflated prospects of a
still-hypothetical "AI economy" continue to mount. Some analysts expect the AI
bubble to burst sooner rather than later, arguing that current investment
growth cannot continue indefinitely in a finite world.
According to a research note recently sent to clients by Deutsche Bank, the AI
boom is currently helping the US economy avoid a recession but it cannot
continue indefinitely. George Saravelos, Global Head of FX Research at Deutsche
Bank, said the US would be close to a recession this year if Big Tech were not
spending so heavily on building new AI data centers.
The "AI machines" are literally saving the US economy right now, Saravelos
said, but this kind of growth cannot be sustained unless spending remains on an
ever-growing course. Nvidia, the major supplier of powerful AI accelerators
used in data centers, could potentially bear much of the residual growth the US
economy has experienced in recent months.
"The bad news is that in order for the tech cycle to continue contributing to
GDP growth, capital investment needs to remain parabolic. This is highly
unlikely," Saravelos said.
Deutsche Bank highlights that much of this growth comes from new facilities
being built by human workers, while the AI technology and services sector has
yet to make a meaningful contribution to the GDP.
Around half of the market gains captured by the S&P 500 index have been driven
by tech-related stocks, Deutsche Bank warns. A separate report by Torsten Sløk
of Apollo Management concurs, noting that equity investors are "dramatically
overexposed" to AI investments.”
Via Violet Blue’s
Threat Model - Cybersecurity: September 30, 2025
https://www.patreon.com/posts/cybersecurity-30-140072852
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
