BIS warns AI spending frenzy could end like railroads, dot-coms, other manias
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Search fieldHome page Seeking Alpha - Power to InvestorsAbout PremiumCreate free accountSearch for Symbols, analysts, keywordsLog in BIS warns AI spending frenzy could end like railroads, dot-coms, other manias Jun 28, 2026, 8:44 AM ETSpace Exploration Technologies Corp. (SPCX) Stock, XLKBy : Rob Williams, SA News Editor Copy LinkSavePlay( 4min ) Comments The global race to build artificial intelligence infrastructure is delivering a boost to economic growth today, but the Bank for International Settlements says the boom carries echoes of some of history's most painful investment busts. In its annual report released To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser. Is this happening to you frequently? Please report it on our feedback forum. If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. Search fieldEntering text into the input field will update the search result belowEntering text into the input field will update the search result below Quick Insights AI-related investments involve heavy borrowing, and a pullback in profits could lead to tighter credit conditions, lower tech valuations, and broader financial pressure if investors and lenders suddenly reassess risk. If AI investments do not deliver expected returns, reduced spending may pressure technology valuations and slow economic growth globally, extending beyond Silicon Valley. The BIS warns that, like past booms such as those in canals, railways, and the internet, excess investment in AI could be followed by painful reversals if profits fall short, impacting more than just stock prices. Recommended For You
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