Will the AI Bubble Trigger a Financial Crisis?

Will the AI Bubble Trigger a Financial Crisis?

Experts, including OpenAI Co-Founder Sam Altman, Meta CEO Mark Zuckerberg, and Federal Reserve Chair Jerome Powell, express concern about an AI bubble potentially causing the US economy to nosedive.

The current US financial system looks like a tinder box just waiting for a spark to land on it.

With high leverage and correlated asset-price movements, a stock-market crash could trigger a financial crisis. Authors explore the potential consequences of a post-bubble nosedive.

Author's summary: AI bubble may trigger financial crisis.

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Project Syndicate Project Syndicate — 2025-10-17

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