We just saw how this bubble could end. Blame Trump, Musk and Korea – AFR
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The threat of rising interest rates and fears about the AI spending boom are the biggest threats to this bubble. Suddenly, both are in play.
After Wall Street’s nasty fall on Friday night, it’s no bad thing the ASX is closed on Monday for the King’s Birthday public holiday. All of a sudden, it seems we’re getting a preview of the most likely way the bubble that’s built up around artificial intelligence will end.
The two most likely bubble poppers have always been rising interest rates – or even the threat of rising interest rates, expressed through the bond market – and the hubris of AI giants betting trillions of dollars on a deeply uncertain future. Both are now in play, but it was the former that did the most damage on Friday night.
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