The Bank for International Settlements warns of overvaluation and revolving financing risks in the AI industry

The Bank for International Settlements stated in its annual economic report that the valuation of AI core companies is at a high level, and the risk premium is significantly reduced. Additionally, some chip and cloud manufacturers have formed circular financing through equity investment, long-term procurement commitments, computing power leasing, and data center leaseback arrangements, which poses a risk of asset duplicate pledge.