The Register reports that the Bank for International Settlements has warned that excessive AI investment could trigger an economic crisis similar to past financial manias, as major cloud providers collectively plan to spend over $700 billion annually on AI infrastructure with uncertain returns. The article highlights Oracle’s exposure through its $300 billion Stargate partnership with OpenAI, noting risks including potential lease defaults and power sourcing challenges, with its stock down more than 40 percent in recent weeks. Industry experts cited in the piece suggest the sector faces a profitability squeeze in coming quarters that could accelerate a broader downturn.
