How a doomsday AI blog post wiped out billions<\/a><\/p>\nReferring to unspecified competitors, he added: \u201cI see a couple people doing some dumb things. They\u2019re just doing dumb things to create [net interest income], or say they\u2019re winning in the mortgage business.\u201d<\/p>\n
He also said he expects the credit cycle will eventually deteriorate again, potentially as a result of AI related disruption to software companies.<\/p>\n
\u201cThere\u2019s always a surprise in a credit cycle \u2026 And this time around, it might be software, because of AI \u2026 There\u2019s moving tectonic plates underneath it, it causes the industry to be challenged.\u201d<\/p>\n
Dimon warned in October about weakness in the credit market after the collapses of auto lender Tricolor Holdings and car-parts supplier First Brands Group. He told investors at the time: \u201cWhen you see one cockroach, there are probably more, and so everyone should be forewarned of this one.\u201d<\/p>\n
Dimon\u2019s latest warning came as a Bank of America client survey found that, for the first time, an \u201cAI bubble\u201d is the biggest concern of credit investors, who noted the high levels of borrowing of cloud service providers, known as \u201chyperscalers\u201d, including Microsoft, Amazon, Meta Platforms and Google.<\/p>\n
Investors expect hyperscaler debt issuance of $285 billion this year, up from the $210 billion expected in December\u2019s survey. Some 23 per cent of respondents saw the threat of an AI bubble as their top concern, up from 9 per cent in Bank of America\u2019s previous survey in December. <\/p>\n
Fears of a potentially unsustainable surge in investment and valuations of AI companies overtook \u201cbubbles in credit\u201d as the top concern, according to the survey.<\/p>\n
Meanwhile, \u201cfew worry about geopolitics or a central bank policy error\u201d, the bank\u2019s analysts wrote. <\/p>\n
However, investors were less worried about the ultimate tech disruption ahead, with only 10 per cent saying that AI-driven corporate obsolescence is their big worry.<\/p>\n","protected":false},"excerpt":{"rendered":"Jamie Dimon, the chief executive of JP Morgan Chase, has warned that some lenders are doing \u201cdumb things\u201d…\n","protected":false},"author":2,"featured_media":444093,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":{"0":"post-444092","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/444092","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=444092"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/444092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/444093"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=444092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=444092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=444092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}