AI risk warnings rattle global markets

Shares of artificial intelligence-linked companies fell across global markets on Monday, after the heads of some of the largest AI firms cautioned that rapid development carries risks, according to The Express Tribune. The report described this as the sharpest challenge so far to the large sums investors have channelled into the sector, which had pushed world equities to record levels.

The decline spread through the AI sector, where firms lean more heavily on borrowed money and circular deals to pay for ambitious spending. This came as bond yields, which reflect global borrowing costs, hit multi-year highs and kept rising.

In early trading, the Nasdaq 100, the benchmark for elite technology shares on Wall Street, dropped 1.2% to a six-week low. Chipmakers, which had been at the forefront of the AI rally, suffered the heaviest losses.