Is the AI boom losing steam? Global economy faces growing risks

The AI investment boom is facing growing risks from higher borrowing costs, persistent inflation, US trade-policy uncertainty and the Iran war, which have already wiped out more than $2 trillion from the Nasdaq 100. Major US technology companies are expected to spend about $1.2 trillion on AI infrastructure next year after an estimated $900 billion this year, while global debt has exceeded $350 trillion and crude is near $105 per barrel. Investors are also weighing a record $280 billion of foreign purchases of US securities in August, increasing contagion risks if the US market corrects.