AI risk warnings rattle global markets

BENGALURU:

AI-linked stocks plunged worldwide on Monday after leaders of the biggest artificial intelligence companies warned of risks from rapid development, the starkest threat yet to the billions of dollars being poured into the industry that have driven world markets to record highs.

The selloff rippled through the industry, where companies are increasingly relying on debt and circular financing to fund ambitious AI spending plans even as global borrowing costs, reflected in multi-year-high bond yields, continue to rise.

Wall Street's elite tech index, the Nasdaq 100, slid 1.2% to a six-week low in early trading as chip stocks, which have led the AI sugar rush, fell the most.