It's going to be tough to tap the brakes on the AI race
Axios · Matt Phillips ·
Trying to slow a huge investment boom runs the risk of setting off a stampede of investors out of assets.
Slowing an investment boom on the scale of the AI build-out is a tricky business — as Thursday's rout in the stock market demonstrated.
Why it matters: Americans may have voted in the midterms to tap the brakes on the AI race, but curbing the investment boom — or some might say, gently deflating the AI bubble — is easier said than done.
The big picture: The historical record shows that once major investment booms are in motion, it can be difficult to temper them without sparking a stampede of investors out of assets.