Wall Street fears 'AI bubble' as tech firms go all-in
Big tech companies like Amazon, Microsoft, Google, and Meta are planning to spend a staggering roughly $650 billion on AI in 2026—far more than what major automakers or energy giants are spending.
Wall Street is starting to wonder if this level of investment makes sense.
Fund managers anxious about overspending on AI projects
A recent Bank of America survey shows that many fund managers are anxious: 35% think companies are overspending on these projects, while only 20% support the big increases.
One in four see an "AI bubble" as the top risk for markets right now—even ahead of inflation or world events—and nearly a third worry this could trigger a credit crisis.
Tech CEOs remain undeterred by spending concerns
Despite concerns about heavy spending on AI, tech CEOs aren't backing down.
Google's Sundar Pichai compared today's AI push to an industrial revolution that is "but 10 times faster and 10 times larger."
Google's Sundar Pichai has been especially clear that he sees this as a once-in-a-generation leap forward.