What happens to the world economy if the US AI bubble bursts? It’ll hurt, admits the IMF, the only question is how badly
There’s been a lot of concern voiced over recent months about how inter-dependent AI leaders financing models appear to be. As consultancy ISG noted earlier, this “circular financing” doesn’t look remotely healthy:
The cloud providers are investing in the model companies, the model companies are committing significant portions of that capital back to the cloud infrastructure, and those commitments are showing up in the backlog and future demand.
The gloomiest of naysayers grumble away with Ponzi scheme comparisons. Even the more grounded commentators are voicing concern that all it’s going to take is one piece of the jigsaw not to fit one quarter and the whole house of cards comes tumbling down - and takes the world economy with it! It’s the East India Company all over again, they warn.
But if the bubble were to burst, would it really be as bad as that? The International Monetary Fund (IMF)...
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