The artificial-intelligence investment boom is creating financial-stability risks as major technology companies commit capital faster than cash flow and increasingly rely on debt and private credit, Bank for International Settlements head Pablo Hernandez de Cos said. The world’s five largest technology firms plan to invest more than $1 trillion in AI-related projects in 2025 and 2026, while PwC projects global AI infrastructure investment will reach $31.6 trillion cumulatively through 2050. Goldman Sachs chief economist Jan Hatzius said spending would eventually slow as the industry shifts from an investment phase to an exploitation phase, although his baseline assumption is that AI investment will prove productive. Hernandez de Cos warned that opaque links among chipmakers, hyperscalers and AI companies, along with concentrated technology shares, could amplify a downturn if commercial returns disappoint. PwC said recurring upgrades to chips and connected equipment will keep driving capital needs across technology, energy, real estate, supply chains, regulation and financing.