Fulgor, collapses and ruins in AI
The fall of one company carries the danger of dragging down others in the sector, with a risk of global propagation.
The financial bubble surrounding artificial intelligence (AI) is following a familiar pattern, according to Pablo Hernández de Cos, director general of the Bank for International Settlements. The AI sector has seen excessive investment and speculation, with companies like Space X, led by Elon Musk, and Alphabet, the parent company of Google, making huge investments with uncertain returns.
The volatility of Space X's stock price and Alphabet's recent 12.6% stock plummet, resulting in a loss of nearly half a trillion dollars in capitalization, have raised concerns about the sector's stability. Central bankers, including Hernández de Cos, José Luis Escrivá, and Emmanuel Moulin, are monitoring the situation, with some warning that the correction could be more widespread and have global implications.
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.
