AI Summary
The Bank for International Settlements warns that competitive pressures in AI development are causing tech giants to build computing capacity at roughly 50% above economically efficient levels. The paper highlights concerns that this over-investment, often financed through debt and complex equity arrangements, may create financial instability similar to previous technology bubbles.
The competitive race to dominate artificial intelligence is driving technology giants to over-build computing capacity by roughly half again more than is economically efficient — and the same contest, financed with debt and circular equity ties, is quietly...
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