JPMorgan Chase vice chairman warns that AI valuations may face a "correction"

Daniel Pinto, Vice Chairman of JPMorgan Chase, stated that the valuation of the flourishing artificial intelligence industry needs to be reassessed and warned that any downward adjustment could potentially have a ripple effect throughout the stock market. Pinto said at a summit in Johannesburg on Tuesday, "There is likely to be a correction, which could affect the entire sector, the S&P index, and the industry as a whole." According to McKinsey, the five largest tech companies globally are expected to invest around $371 billion this year in data centers for training and operating complex models. By the end of this decade, cumulative investments of $52 trillion are expected to be needed to meet demand for this type of infrastructure.