Taking history as a mirror, the International Monetary Fund warns that the AI investment race may turn debt-driven prosperity into depression.

The Bank for International Settlements (BIS) stated that the current global investment competition surrounding artificial intelligence infrastructure is evolving towards surpassing previous technology booms, which ultimately ended in severe market turbulence. A research report released by the BIS, headquartered in Basel, on Tuesday warned that the increasing debt financing and financial connections between large-scale cloud service providers and artificial intelligence developers will raise the risk of broader financial instability if productivity growth cannot ultimately justify these massive investments. BIS economist Phurichai Rungcharoenkitkul wrote in the report, "The more capacity that the industry builds, the higher the productivity threshold that must be crossed to sustain the boom. Therefore, larger booms are not only more likely to disappoint, but also, if they do disappoint, the damage will be greater."