Bank of America Warns $1T AI Investment Mirrors Classic Bust Cycle

Bank of America warned that surging capital costs and a drop in service pricing are signaling a potential market correction in artificial intelligence, identifying intensifying competition and unsustainable spending as key indicators that the sector is mirroring a classic boom-and-bust cycle. The bank noted that total AI investment has reached approximately $1 trillion but cautioned that this growth may be unsustainable.