{"id":392162,"date":"2026-01-27T00:20:16","date_gmt":"2026-01-27T00:20:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/392162\/"},"modified":"2026-01-27T00:20:16","modified_gmt":"2026-01-27T00:20:16","slug":"ai-spending-frenzy-could-reshape-the-economy-bridgewater-cios-say","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/392162\/","title":{"rendered":"AI spending frenzy could reshape the economy, Bridgewater CIOs say"},"content":{"rendered":"\n<p class=\"yf-vbsvxt\">Jan 26 (Reuters) &#8211; Spending on <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial intelligence;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> by large corporations will continue to grow exponentially and reshape the economy, \u200bBridgewater Associates&#8217; co-chief investment officers said in a client note \u200con Monday.<\/p>\n<p class=\"yf-vbsvxt\">AI has emerged as the key driver of global corporate investment and a \u200ccentral force behind the market rally, altering capital spending plans across industries.<\/p>\n<p class=\"yf-vbsvxt\">A surge in corporate spending across the AI supply chain, from data center infrastructure to chips and power, has helped lift equity markets \u2060even as worries grow \u200cover a potential market bubble and the boom&#8217;s sustainability.<\/p>\n<p class=\"yf-vbsvxt\">&#8220;Straightforward game-theoretic calculations make it unacceptable for these companies to \u200daccept falling behind rivals by even a few months of progress, so one company\u2019s decision to spend more aggressively on AI capex compels others to \u200bfollow,&#8221; the investment firm&#8217;s co-CIOs Bob Prince, Greg Jensen and \u200cKaren Karniol-Tambour wrote.<\/p>\n<p class=\"yf-vbsvxt\">Global stocks swung sharply in the fall as growing concern over a potential AI stock bubble weighed on sentiment and heightened the risk of a selloff. Still, Wall Street\u2019s main indexes ended 2025 with double-digit gains, buoyed by strong investor demand for AI-linked \u2060stocks.<\/p>\n<p class=\"yf-vbsvxt\">Bridgewater CIOs said a surge in \u200bAI capital spending could increase inflation as \u200bhigher demand pushes up prices of items in its ecosystem, including chips and electricity.<\/p>\n<p class=\"yf-vbsvxt\">They added that the dynamics \u200dcould push up \u2060risks and create bubble-like conditions.<\/p>\n<p class=\"yf-vbsvxt\">&#8220;Easy policy risks further accelerating speculative equity market activity and the frenzy of deal-making and AI investment \u2060that\u2019s already underway, creating a ripe environment for a bubble, and risks enabling \u200ca cyclical overheating,&#8221; the note said. \u200b\u200b\u200b\u200b\u200b<\/p>\n<p class=\"yf-vbsvxt\">(Reporting by Manya Saini \u200cin Bengaluru; Editing by Tasim Zahid)<\/p>\n","protected":false},"excerpt":{"rendered":"Jan 26 (Reuters) &#8211; Spending on artificial intelligence by large corporations will continue to grow exponentially and reshape&hellip;\n","protected":false},"author":2,"featured_media":392163,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[733,19818,84,17275,52693,1294,4116,56,54,55],"class_list":{"0":"post-392162","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-artificial-intelligence","9":"tag-bridgewater-associates","10":"tag-business","11":"tag-capital-spending","12":"tag-data-center-infrastructure","13":"tag-economy","14":"tag-spending","15":"tag-uk","16":"tag-united-kingdom","17":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/392162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=392162"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/392162\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/392163"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=392162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=392162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=392162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}