Bank of England's Bailey warns AI investment boom could spark market correction
Bank of England Governor Andrew Bailey told the BBC the central bank is closely monitoring massive investment flowing into AI, warning that asset prices for AI-linked firms could face a correction. He noted Nvidia's $5.5tn valuation and heavy spending by Alphabet, Meta, Microsoft and Amazon, alongside plans by Anthropic and OpenAI to sell shares on US markets.
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Bailey's comments suggest the Bank sees systemic risk building in markets heavily reliant on AI optimism, which could affect broader financial stability if valuations unwind. His remarks also indicate regulators are trying to balance encouraging AI-driven growth against the danger of a bubble bursting, though he stopped short of predicting when or if a correction would occur.
- Bailey says the Bank of England is watching AI investment levels 'very carefully'
- Nvidia's $5.5tn valuation and big tech spending highlight scale of AI-related market exposure
- Anthropic and OpenAI preparing share sales could bring further large capital inflows into AI
Source: bbc.co.uk — Watch Our Pick Of Standout Clips Across The Bbc, 2026-10-01
Published there as: “AI boom could trigger market shocks, Bank of England boss warns”
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