BIS WARNED THE AI INDUSTRY OF THE RISKS OF OVERVALUATION AND REVOLVING FINANCE

IN ITS ANNUAL ECONOMIC REPORT, THE BANK FOR INTERNATIONAL SETTLEMENTS STATED THAT THE VALUATION OF AI CORE COMPANIES WAS HIGH, THAT THE RISK PREMIUM WAS SIGNIFICANTLY REDUCED AND THAT SOME CHIP AND CLOUD MANUFACTURERS WERE AT RISK OF DOUBLE PLEDGE OF ASSETS THROUGH EQUITY INVESTMENTS, LONG-TERM PURCHASE COMMITMENTS, COMPUTING LEASES AND DATA CENTRE LEASEBACK ARRANGEMENTS。