State Street CEO Ron O’Hanley believes it is difficult to see AI as a bubble because large investments in data centers are supported by real demand and concrete orders. Seeking Alpha writes. However, he points to the risk that more efficient AI could reduce the need for the capacity being built out.
According to Bloomberg, AI initiatives have been financed with more than USD 650 billion in loans in less than two years, raising concerns about high valuations and rising bond yields.
At the same time, O’Hanley believes that the latest stock market downturn was expected and so far has not been disorderly.
