Gillian Tett just dropped five uncomfortable questions about AI that nobody wants to talk about but probably should.
1️⃣ Can we actually trust tech company forecasts? Like, who's really gonna pay for all this stuff? Where's that money actually coming from? And if these forecasts turn out to be... let's say optimistic... or worse, just feeding off themselves in some weird loop, then what?
2️⃣ Who's funding this whole AI buildout now? It used to be tech companies burning their own cash, but now it's external money pouring in. But seriously – where's all that coming from?
3️⃣ How high can rates actually go? There's this thing where AI funding might be pulling money away from Treasuries, right when foreign buyers are backing off. What does that do to debt costs and refinancing risk down the line?
4️⃣ Could oil mess with yields even more? Stockpiles are getting thin. Any hiccup in the Gulf and prices could spike, pushing yields higher.
5️⃣ If the AI boom slows down... what happens to growth? More than 75% of global goods trade growth in H1 was AI-related. If that cools off, how do countries and companies keep servicing their debt?
Not saying I have answers. Just saying these are the kinds of questions that make you squirm a bit when you think about them too long.
1️⃣ Can we actually trust tech company forecasts? Like, who's really gonna pay for all this stuff? Where's that money actually coming from? And if these forecasts turn out to be... let's say optimistic... or worse, just feeding off themselves in some weird loop, then what?
2️⃣ Who's funding this whole AI buildout now? It used to be tech companies burning their own cash, but now it's external money pouring in. But seriously – where's all that coming from?
3️⃣ How high can rates actually go? There's this thing where AI funding might be pulling money away from Treasuries, right when foreign buyers are backing off. What does that do to debt costs and refinancing risk down the line?
4️⃣ Could oil mess with yields even more? Stockpiles are getting thin. Any hiccup in the Gulf and prices could spike, pushing yields higher.
5️⃣ If the AI boom slows down... what happens to growth? More than 75% of global goods trade growth in H1 was AI-related. If that cools off, how do countries and companies keep servicing their debt?
Not saying I have answers. Just saying these are the kinds of questions that make you squirm a bit when you think about them too long.