AI Bubble: Economist Sees No Soft Landing

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Preview AI Bubble: Economist Sees No Soft Landing

Paul Kedrosky, an investor and research fellow at MIT, expresses significant concerns regarding the current trajectory of the AI sector. He asserts that an excessive number of data centers are being constructed across the USA, designed for the artificial intelligence industry, which vastly surpasses the actual demand. Furthermore, Kedrosky points out that this substantial expansion is predominantly financed through borrowed capital, creating a precarious situation.

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