Global investment funds are expressing significant concern over the substantial capital flowing into artificial intelligence, with a Bank of America survey revealing that for the first time in two decades, a majority of funds believe companies are over-investing in AI. Many investors, specifically 45%, view an AI bubble as the biggest risk for global investments by 2026, and over half, 53%, already consider AI stocks to be in a bubble. This sentiment has led to a reallocation of investments, with less money directed towards tech stocks and more towards sectors like healthcare and banking. Despite these worries, most funds still anticipate AI will boost productivity, though the timing of these returns remains uncertain. Meanwhile, the United States faces a challenge in open-source AI development, with experts like Nathan Lambert of the ATOM Project warning that Chinese companies such as DeepSeek and Alibaba are outpacing US firms like OpenAI and Google in open-weight models. The ATOM Project suggests the US needs to invest approximately $100 million annually to build competitive open-source AI models and mitigate potential security risks from relying on foreign technology. On the corporate front, Warner Music Group has settled its AI copyright lawsuit with Udio, licensing its music for Udio's AI platform. This agreement includes new safeguards like fingerprinting and filtering to ensure proper artist and songwriter credit and payment, and Warner Music also announced a partnership with Stability AI to develop ethical AI tools. Microsoft is enhancing its Azure Firewall by integrating it with the AI-powered Security Copilot platform, allowing security analysts to investigate network threats using natural language. Debenhams Group, including brands like PrettyLittleThing and boohoo, has adopted a new agentic AI solution developed with Peak to optimize sales, stock, and pricing, particularly during peak seasons. CrewAI is expanding its AI Agent Operations Platform globally, opening offices in South Korea and Spain, and partnering with KT for Asia-Pacific growth, having handled 1.1 billion AI automations in the third quarter of 2025. A new AI Infrastructure Coalition (AIIC) has formed, including major players like Amazon, Google, Microsoft, Nvidia, and Oracle, to advocate for pro-AI policies and strengthen US AI infrastructure, aiming to secure American jobs and leadership against China. Geoffrey Hinton, often called the "godfather of AI," has voiced serious concerns at Georgetown University, warning that humanity is unprepared for rapid AI advancements, which could lead to widespread job loss, increased inequality, new forms of warfare, and the potential for AI systems like GPT-5 to surpass human intelligence and even develop self-preservation goals. In New York City, AI companies are contributing to economic growth and office occupancy, with Andrew Kimball of the NYC Economic Development Corporation noting that AI-focused businesses often require employees to be in the office frequently due to the importance of human interaction. Additionally, Ithaca College students have established a new committee to gather student opinions on AI, ensuring their voices are heard as AI becomes more prevalent in academic and daily life.
Key Takeaways
- A Bank of America survey indicates that for the first time in 20 years, a majority of global investment funds believe companies are over-investing in AI.
- 45% of fund managers see an AI bubble as the biggest risk for global investments by 2026, with 53% believing AI stocks are already in a bubble.
- The United States is lagging behind China in open-source AI development, with Chinese companies like DeepSeek and Alibaba leading in open-weight models compared to US firms like OpenAI and Google.
- The ATOM Project suggests the US needs to invest approximately $100 million annually to build competitive open-source AI models and address security concerns.
- Warner Music Group settled its AI copyright lawsuit with Udio, licensing its music and implementing safeguards for artist credit and payment, and also partnered with Stability AI for ethical AI tool development.
- Microsoft has integrated its AI-powered Security Copilot with Azure Firewall, enabling security analysts to investigate network threats using natural language.
- Debenhams Group is utilizing a new agentic AI solution from Peak to enhance sales, stock, and pricing management across its brands.
- CrewAI is expanding globally with new offices in South Korea and Spain, and handled 1.1 billion AI automations in Q3 2025.
- The AI Infrastructure Coalition (AIIC), including Amazon, Google, Microsoft, Nvidia, and Oracle, has launched to advocate for pro-AI policies and strengthen US AI infrastructure.
- Geoffrey Hinton, the "godfather of AI," warns that humanity is unprepared for rapid AI advancements, citing risks of job loss, inequality, new wars, and AI systems potentially surpassing human intelligence and developing self-preservation goals.
Global funds worry about too much AI investment
Global investment funds are concerned about the huge amounts of money going into artificial intelligence. A Bank of America survey shows that for the first time in 20 years, most funds believe companies are over-investing in AI. Many investors think AI is a bubble and the biggest risk for global investments by 2026. Cash levels in these funds are low, which historically means stocks might fall. While most funds believe AI will boost productivity, they are unsure when these returns will actually show up.
Global funds worry about too much AI investment
Global investment funds are concerned about the huge amounts of money going into artificial intelligence. A Bank of America survey shows that for the first time in 20 years, most funds believe companies are over-investing in AI. Many investors think AI is a bubble and the biggest risk for global investments by 2026. Cash levels in these funds are low, which historically means stocks might fall. While most funds believe AI will boost productivity, they are unsure when these returns will actually show up.
Global funds worry about too much AI investment
Global investment funds are concerned about the huge amounts of money going into artificial intelligence. A Bank of America survey shows that for the first time in 20 years, most funds believe companies are over-investing in AI. Many investors think AI is a bubble and the biggest risk for global investments by 2026. Cash levels in these funds are low, which historically means stocks might fall. While most funds believe AI will boost productivity, they are unsure when these returns will actually show up.
Global funds worry about too much AI investment
Global investment funds are concerned about the huge amounts of money going into artificial intelligence. A Bank of America survey shows that for the first time in 20 years, most funds believe companies are over-investing in AI. Many investors think AI is a bubble and the biggest risk for global investments by 2026. Cash levels in these funds are low, which historically means stocks might fall. While most funds believe AI will boost productivity, they are unsure when these returns will actually show up.
Investors worry companies overspend on AI Bank of America says
A Bank of America survey of 172 global fund managers shows concerns about AI investments. For the first time in 20 years, a majority of investors believe companies are over-investing, mainly due to the large spending on AI infrastructure. Many managers, 45%, see an AI bubble as the biggest risk for global investments. Over half, 53%, think AI stocks are already in a bubble. This has led to a shift in investments, with less money going into tech stocks and more into areas like healthcare and banking.
US needs open source AI to compete with China
The United States is falling behind China in developing open-source AI models, which could create future problems. Experts like Nathan Lambert, founder of the ATOM Project, warn that Chinese companies such as DeepSeek and Alibaba are leading in this area. US companies like OpenAI and Google offer less capable open-weight models compared to China's. Relying on foreign AI models could be risky if access is cut off. The ATOM Project suggests the US needs to invest about $100 million yearly to build its own competitive open-source AI models and encourage innovation.
US lags China in open source AI raising security concerns
The United States is falling behind China in open-source AI development, which creates potential security risks and supply chain problems. Chinese companies like DeepSeek and Alibaba are leading in open-weight models, while the US focuses more on private AI systems. Nathan Lambert, founder of the ATOM Project, warns that relying on foreign open models could be dangerous if access is restricted. The ATOM Project suggests the US should invest around $100 million each year to build its own strong open-source AI models. This investment is crucial for the US to lead in AI innovation and avoid future dependencies.
Warner Music settles AI lawsuit with Udio
Warner Music Group settled its AI copyright lawsuit with Udio, an AI music platform. While financial details remain private, Udio agreed to ensure all music on its service is authorized and licensed. Udio will add new safeguards like fingerprinting and filtering to properly credit artists and songwriters on AI tracks. This deal allows fans to create remixes and new songs with participating artists. Warner Music Group also announced a partnership with Stability AI to develop ethical AI tools for music creation.
Warner Music settles Udio lawsuit licenses music for AI
Warner Music Group settled its copyright lawsuit with AI music startup Udio and signed a deal to license its music for Udio's AI platform. This new platform will use generative AI models trained on authorized music to create new revenue for artists and songwriters. It will allow users to make remixes, covers, and new songs using the voices of participating artists, ensuring they are credited and paid. WMG CEO Robert Kyncl stated this collaboration helps responsibly use AI's potential. Sony Music Entertainment and Universal Music Group are still suing Udio and Suno.
Microsoft enhances Azure Firewall with AI Security Copilot
Microsoft now combines Azure Firewall with its AI-powered Security Copilot platform. This integration allows security analysts to investigate network threats using simple language instead of complex queries. Security Copilot, a generative AI tool, helps security teams with tasks like responding to incidents and hunting for threats. Azure Firewall protects cloud workloads, and its Intrusion Detection and Prevention System is now enhanced by AI. Security teams can easily find top attack signatures and get more details about threats across their entire network.
Debenhams uses new AI for sales and stock management
Debenhams Group, which includes brands like PrettyLittleThing and boohoo, has started using a new agentic AI solution. This AI helps manage sales, stock, and pricing more effectively across all its brands, especially during the busy Golden Quarter. The system improves how well the company sees customer demand and makes decisions faster. Developed with Peak, the AI can predict and act on decisions by itself, saving time for the merchandising team and making planning for events like Black Friday much stronger.
New coalition promotes pro-AI policies for US
A new group called the AI Infrastructure Coalition (AIIC) has launched to advocate for policies that support artificial intelligence. This coalition, which includes major tech companies like Amazon, Google, Microsoft, Nvidia, and Oracle, aims to strengthen every part of the AI infrastructure. The group emphasizes creating American jobs and ensuring the US wins the AI race against China. Former Senator Kyrsten Sinema and former Representative Garret Graves are co-chairs, highlighting the need for a strong energy and regulatory environment for AI growth.
AI godfather Hinton warns humanity unprepared for future
Geoffrey Hinton, known as the "godfather of AI," warned at Georgetown University that humanity is not ready for the fast advancements in artificial intelligence. He believes AI could cause widespread job loss, increase inequality, and even lead to new types of wars. Hinton stated that AI systems like GPT-5 already know much more than humans and could soon become smarter. He also fears that AI agents might develop goals to stay alive and deceive humans trying to turn them off. Hinton left Google in 2023 to speak openly about these serious risks.
CrewAI expands globally launches new AI product and course
CrewAI is expanding its AI Agent Operations Platform with a new product, global offices, and an AI course. The company opened new offices in South Korea and Spain, partnering with KT for its Asia-Pacific expansion. CrewAI CEO João Moura is also launching a new AI course with Andrew Ng, founder of DeepLearning.AI. In the third quarter of 2025, CrewAI handled 1.1 billion AI automations and secured large global agreements. The company aims to provide reliable and compliant AI agents for businesses worldwide.
AI companies boost New York City economy and office life
Andrew Kimball, CEO of the New York City Economic Development Corporation, says AI companies are helping New York City thrive. These companies are increasing office leasing and encouraging workers to return to the city. Kimball noted that AI-focused businesses often have employees in the office seven days a week because human interaction is vital for their success. He believes that while AI might change some jobs, New York City will ultimately benefit greatly from the growth of the AI industry.
Ithaca College students create new AI committee
The Ithaca College Student Governance Council voted to create a new student-led committee focused on artificial intelligence. This committee will gather student opinions on AI through meetings and town halls twice a semester. College officials also discussed IT's sustainability efforts, noting that data centers use 100% renewable energy. They are also working on a "journey mapping" study to improve students' digital experiences and launched a new IC Mobile App for school resources. The new AI committee aims to ensure student voices are heard as AI becomes more common.
Sources
- Global funds fear AI investment indigestion
- Global funds fear AI investment indigestion: Mike Dolan
- Global funds fear AI investment indigestion: Mike Dolan
- Global funds fear AI investment indigestion
- ‘Slow down, hyperscalers’: For the first time in 20 years, investors say companies are overinvesting, Bank of America says
- The US Needs an Open Source AI Intervention to Beat China
- US Falls Behind China in Open Source AI as Security Risks Mount
- Warner Music Group Settles AI Infringement Lawsuit With Udio
- Warner Music settles copyright lawsuit with Udio, signs deal for AI music platform
- Microsoft Adds Azure Firewall With AI-Powered Security Copilot
- UK's Debenhams adopts new agentic AI for sales & stock decisions
- Exclusive: AI Infrastructure Coalition launches to push pro-AI policies
- Geoffrey Hinton, the 'godfather of AI,' says humanity isn't ready for what's coming
- CrewAI Strengthens AI Agent Operations Platform With New Product, Global Expansion and AI Course with Andrew Ng
- AI-focused developers help fuel New York City life, city agency chief says
- SGC votes to establish new student-led committee on artificial intelligence
Comments
Please log in to post a comment.