A selloff in artificial intelligence-related stocks across Asia on Tuesday signalled growing investor concerns about the sustainability of the massive spending boom underpinning the technology sector, as rising bond yields and higher financing costs threaten to undermine the investment case for AI infrastructure, according to a report by Reuters.
Nearly four years after OpenAI launched ChatGPT, billions of dollars have flowed into semiconductor manufacturers, data centre operators, cable companies and other businesses benefiting from an unprecedented race to build computing infrastructure. However, signs of strain are emerging as investors increasingly question whether the expected returns from AI investments will justify the capital being deployed.
