JPMorgan vice chairperson warns of "correction" in AI valuations

Daniel Pinto, vice-chairperson of JPMorgan Chase, said valuations in the booming artificial intelligence sector needed to be reassessed and warned that any downgrade could have ripple effects across the stock market. "There is likely to be a correction that could ripple through the sector, the S & P and the industry," Mr. Pinto said at a summit in Johannesburg on Tuesday. McKinsey estimates that the world's five biggest technology companies are expected to spend about $371 billion this year on data centres needed to train and run complex models. By the end of the decade, such infrastructure is expected to require cumulative investment of up to $5.20 trillion to meet demand.