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Hedge Fund's Near Collapse Exposes Risks of A.I. Debt Bets

Original: Hedge Fund’s Near Collapse Lays Bare Risks of Borrowing to Bet on A.I.

A hedge fund has come close to collapse after making heavily leveraged bets on artificial intelligence, according to a New York Times report. The near failure is being cited as a warning about how much borrowed money is flowing into A.I.-related trades, reviving concerns that excessive leverage could amplify losses if enthusiasm for the technology cools and markets turn.

Why now: Investors are worried that debt-fuelled speculation in A.I. stocks mirrors past bubbles and could trigger wider market stress.

New York Timeshedge fund industryartificial intelligence sector

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