Where Do You Hide From an AI Bubble?
TL;DR
Merryn Somerset Webb sits down with Chris Clothier, co-chief investment officer at CG Asset Management, to discuss the fragile economics of the AI boom and what could bring the spending spree to an end. They also explore the case for inflation-linked bonds, the growing fiscal risks facing governments, where investors can find safe havens in stretched markets and why, despite his concerns about inflation, Clothier's firm doesn't own any gold.
Nauti's Take
The debate has an upside for anyone using AI: when investors look harder at returns, applications with measurable value move to the front. The risk sits in the spending.
Data centers and chips are being financed on expectations that still have to be met. Investors should know their concentration risk, and companies should judge their AI projects against hard numbers.
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