Apollo Economist Flags AI Investment Surge as Bigger Than Dotcom Bubble

What Happened

Torsten Slok, economic advisor at Apollo Global Management, has issued a warning that the ongoing artificial intelligence investment frenzy is even more intense than the dotcom bubble of the late 1990s. He points out that momentum in AI-related stocks now outpaces the historic tech boom, and that the rally is also extending into credit markets, where companies with small AI exposure are aggressively raising debt. Slok suggests this bubble effect is creating vulnerabilities in both equities and corporate bonds, urging investors to be cautious as valuations in the AI sector climb to unprecedented levels.

Why It Matters

This warning underscores the massive influence artificial intelligence currently has over global markets and the potential risks of unchecked investor enthusiasm. A potential correction could impact tech startups, institutional investors, and retirement portfolios worldwide as AI becomes central to market dynamics. Read more in our AI News Hub