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The Bank for International Settlements (BIS) warned that a sudden collapse in AI investments could cause disruptions in credit markets similar to the 2008 financial crisis.

The warning came in its latest annual report, where it placed the risks of the AI boom on par with inflation pressures and sovereign financial challenges.

The report points to a rise in so-called 'circular financing' among major companies: chip manufacturers directly invest in AI labs and new cloud service providers, who then sign long-term contracts to buy chips or computing services from the same investing entities.

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Moreover, data center construction is typically carried out by third parties who then lease them back to AI operators, with complex contractual terms that are mostly undisclosed to the public, raising concerns that the same financial assets may be used as collateral by multiple parties without effective oversight.

The report notes record highs in bond issuance and further financial complexity due to variable service pricing and recurring export restrictions, increasing the fragility of the sector's financial structure in the first half of 2026.

Systemic risks beyond stock prices

The report affirmed that a repricing of risks, whether due to rising interest rates or the bursting of the 'AI bubble,' has the potential to spread disruption in credit markets on a shocking scale similar to that of 2008.

The danger here lies not only in the high valuations of AI-related stocks, but in the fragility of the entire financial system supporting this technological boom.

The report noted that the top ten tech companies in the S&P 500 now account for 36% to 40% of the index's value, a concentration exceeding even the levels of the 'dot-com' era.

BIS Chairman Pablo Hernández de Cos pointed to inflation as an additional concern, as cost-of-living shocks and energy price volatility have fueled the possibility of compounding economic effects.

The BIS concluded with a clear warning to policymakers and regulators that the risks of the AI boom lie in the opaque and complex financial infrastructure, not just in market valuations of stocks, and urged careful and continuous monitoring of this sector in anticipation of 'disruption scenarios' similar to the fallout of the 2008 crisis should a 'sharp investment correction' or sudden change in interest rates occur.

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Artificial Intelligence, Business Technology

Editorial team Follow on X Send an email Last updated: June 28, 2026

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