The Bank of England issued a warning about the AI boom based on debt and stated that the performance of some companies' CDS is concerning.

The Bank of England has warned that the spending spree in the artificial intelligence infrastructure sector, supported by debt financing, reaching tens of trillions of dollars, carries the risk of collapse in the face of "severely overvalued" stock market valuations. The Bank of England stated on Tuesday that the correction in AI stocks will impact a wider range of debt markets, and pointed out that early warning signals of credit defaults swaps for companies relying on debt for investment financing have emerged. Despite current investments in AI being mainly cash-driven by "super large-scale enterprises," the Bank of England said that out of an estimated $50 trillion in AI spending over the next five years, around half will be achieved through external financing.