The Bank of England warns that the current surge in AI-related investments could mirror the 1990s dotcom bubble, which saw the Nasdaq index soar by 600% before plummeting 78%. Experts caution that the significant capital inflow into AI firms may not align with their potential profitability, raising concerns of overvaluation. As AI deals grow larger, analysts anticipate more red flags, suggesting the market could face serious corrections ahead.
The Bank of England warns that the current surge in AI-related investments could mirror the 1990s dotcom bubble, which saw the Nasdaq index soar by 600% before plummeting 78%. Experts caution that the significant capital inflow into AI firms may not align with their potential profitability, raising concerns of overvaluation. As AI deals grow larger, analysts anticipate more red flags, suggesting the market could face serious corrections ahead.