AI Industry's Funding: A Growing Concern

Simon Warner, chief investment officer at Aware Super, warns of potential market risks in the AI industry by 2026. Despite high valuations supported by earnings growth, he notices a shift in funding sources, moving from stable retained earnings to more circular and conduit financing. This shift, though not yet a red flag, is causing concern. Warner also highlights the connection between capital spending and the valuations of major tech stocks, emphasizing the potential impact of a market correction if one of these pillars stumbles.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.