AI Industry Will Need $2 Trillion Over Five Years, but Its Economy Remains Uncertain
At a summit in Hong Kong, PIMCO CEO Emmanuel Roman warned of a potential AI market downturn, while Apollo President Jim Zelter pointed to persistent uncertainty in its economy.
Roman stated that the AI market is headed for a downturn, after which "everything could break." He estimated the industry's financing needs at $2 trillion over the next five years.
Zelter told analysts that society will likely use significantly more computing power, and AI is developing rapidly. However, he noted that substantial uncertainty remains regarding how prices and the economy will change.
The report also provided an example of demand for debt financing: Meta's bond issuance, expected to total $15–20 billion, received $58 billion in bids. Roman cited potential triggers for a market reversal, including U.S. interest rate hikes, war, and a eurozone crisis.
