AI slowdown calls justified but collapse of bubble may be more immediate threat | Heather Stewart

The warning signs are emerging that the rapid growth of the artificial intelligence sector may be unsustainable. Tech firms are taking on significant debt to fund the construction of datacentres, which is a cause for concern. This debt burden could lead to a financial crisis, not just in the US, but also globally, as the AI bubble collapses.

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The scale of debt used to fund tech expansion is a concern. This could lead to a collapse of the tech debt bubble, affecting the overall market.

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