Deutsche Bank has raised concerns about the sustainability of current AI infrastructure investments, indicating that a parabolic increase in technology spending is necessary to sustain growth. Analysts Adrian Cox and Stefan Abrudan caution that financial returns could be jeopardized if spending targets are not achieved, potentially leading to underperformance. The report specifically points to the risk of capital destruction if AI revenue does not keep pace with rising costs, especially in hyperscale data center investments. While drawing parallels to the dotcom bubble, the report notes that current market valuations are more cautious.
Deutsche Bank Warns of Unsustainable AI Infrastructure Spending
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