Bank of England Governor Andrew Bailey warned Parliament that a collapse in artificial intelligence stocks could ripple through the UK economy, potentially triggering interest rate changes.
Bailey delivered the remarks during testimony to the Treasury Committee, signaling the central bank's readiness to respond to market volatility stemming from an AI bubble burst.
The warning reflects growing concerns about soaring valuations in AI-related stocks. Tech companies developing generative AI tools have seen their share prices surge, raising questions about whether current valuations are sustainable.
Bailey's comments suggest the BOE is monitoring AI sector risks closely. A significant downturn could impact broader economic conditions, including inflation and employment, which influence monetary policy decisions.
The governor did not specify what form BOE action might take, but his remarks imply rate adjustments remain on the table if market conditions deteriorate significantly.
The statement adds to a chorus of warnings from financial regulators worldwide about potential AI market excesses. Central banks globally are grappling with how to assess risks in rapidly evolving technology sectors where traditional valuation metrics prove challenging to apply.
President Trump is expanding his data center infrastructure pledge to include Republican governors and major utilities. The agreement requires data center developers to cover their own energy and infrastructure costs.
Surging demand from data centers has increased public electricity costs by $23 billion, according to analysis. The trend reflects the infrastructure strain caused by AI and cloud computing expansion.
Countries worldwide are implementing age verification requirements and exploring dedicated online spaces for minors as concerns mount over social media's impact on child safety and wellbeing.
Instacart reported Q1 revenue of $1.02 billion, up 14% year-over-year, with gross transaction value reaching $10.29 billion. Growth slowed compared to the prior year's 16% rate, and shares dropped 11% on the earnings.