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BofA Global Research warns that a sustained correction in the AI trade poses a major risk to the global economy, as data-center backlash becomes a ballot issue in 10 states ahead of the midterm vote. Meanwhile, data-center construction spending hits record levels and big tech capex nears $800 billion this year.
The author borrows the perspective of prominent US short-seller Steve Eisman to offer an alternative interpretation of Anthropic's claims that "AI could destroy humanity": the US economy is heavily bet on AI, and if Anthropic and OpenAI were to collapse, it could trigger a recession — and the resulting erosion of wealth would feel, to many people, like the end of the world.
The article highlights the risk of excessive customer concentration in the AI boom, with data showing that most enterprise revenue for OpenAI and Anthropic comes from a small percentage of customers, posing a challenge for their upcoming IPOs.