The rising threat to the global financial system

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The rising threat to the global financial system

Stephen Bartholomeusz Senior business columnist November 10, 2025 — 10.58am Advertisement

Until now, questioning of the boom in investment in artificial intelligence has largely been confined to whether it constitutes a stockmarket bubble. Increasingly, the conversation will shift to whether that boom represents a threat to financial system stability.

The first phase of the sector’s development has been largely, albeit not entirely, equity funded, with the mega techs – the so-called “hyperscalers” like Google, Microsoft, Meta Platforms and Amazon – funding their massive investments in chips and data centres from their massive cash flows.

The combination of frothy asset values and leverag