IMF warns $1.4tn in circular AI deals could deepen a market correction
Hyperscalers now issue 10% of the world’s investment-grade bonds, up from under 1% in 2024. The IMF also says software makers had almost no time to patch flaws in 70% of cases this year.
Via TNW | Artificial-intelligence
A correction in AI-related stocks and debt could set off market turmoil, the International Monetary Fund said on Tuesday. It named the AI risk as one of three that could sharply tighten financial conditions. The other two are a sharp rise in government bond yields and cyber threats.
The warning came in the IMF’s Global Financial Stability Report at the annual meetings in Bangkok. Weaker or less durable AI investment and profits could trigger the correction, the Fund said. Rising…
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