AI Buildout Poses US Financial Risks
A new study warns that the massive artificial intelligence infrastructure buildout relies on complex financing structures that could create systemic risks to the US economy.
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The artificial intelligence infrastructure boom will consume 3.6% of United States GDP annually through 2032, requiring more than $10 trillion in financing, a new study showed. That expenditure surpasses the rollout costs of railroads, interstate highways, and the internet. The intricate financing arrangements required for the buildout carry systemic risks comparable to the subprime mortgage crisis, according to Columbia Business School finance professor Stijn Van Nieuwerburgh.
