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IMF Warns of AI Boom Echoing Dot-Com Bubble, but Sees Limited Systemic Risk
IMF Warns of AI Boom Echoing Dot-Com Bubble, but Sees Limited Systemic Risk
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The International Monetary Fund draws parallels between today's AI investment frenzy and the late-1990s internet boom, cautioning that inflated valuations may face sharp corrections. Unlike the dot-com era, current tech investments are largely debt-free—reducing potential contagion risks to the broader financial system.
Chief economist Pierre-Olivier Gourinchas notes cash-rich firms are driving AI infrastructure spending, from chips to data centers. 'Equity holders may lose out, but banking systems appear insulated,' he stated during the IMF-World Bank spring meetings. The warning comes as tech giants pour billions into what Gourinchas calls 'transformative but uncertain' productivity gains.
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