Big‑tech firms such as Amazon, Google, Microsoft and Meta are pouring record capital into artificial‑intelligence initiatives, promising ever‑larger budgets. Meanwhile, AI‑focused companies like OpenAI are generating impressive revenue while simultaneously burning through billions in expenses. Investors are questioning whether the surge of spending will translate into solid returns, citing capacity constraints, high compute costs and the risk of a bubble. Executives acknowledge both the hype and the financial challenges, leaving the market to watch closely for signs of sustainable growth versus speculative over‑investment. Read more →

The Bank of England has cautioned that AI‑related stock valuations have reached their highest levels since the dot‑com surge of the late 1990s. While current price‑to‑earnings ratios appear less extreme when based on future profit expectations, the central bank notes that increasing concentration within market indices leaves equity markets especially vulnerable if enthusiasm for AI wanes. The BoE draws parallels to the 2000 dot‑com peak, highlighting the rapid rise and steep fall of the Nasdaq during that era and warning that similar dynamics could unfold for AI‑focused equities. Read more →