The euphoria before the collapse
The AI investment boom surpasses the internet and railway bubbles, as losses and commitments increase
US capital markets are experiencing an extraordinary moment, driven by AI, abundant financing, and high growth expectations. This has led to a series of records, including the largest stock market debut by SpaceX, Google's largest capital increase, and Amazon's largest bond issuance. Despite the enthusiasm, concerns are rising about potential excesses, with The Economist warning that the current investment boom, measured against GDP, surpasses the combined scale of the internet and railway bubbles.
Experts estimate a 95% probability of a short-term capital market crisis, citing risks such as AI companies losing access to financing or a price war triggered by technological advancements or Chinese competition.
Written by urgent.news from El Pais Economia's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
