IMF warns an AI share crash could ripple through global financial stability

The International Monetary Fund warns that an AI stock price correction could spread globally and put world financial stability at risk.

It cites sky-high AI valuations, rising debt, and circular financing deals, including $300bn of transactions between hyperscalers and weaker AI firms in three years.

The IMF names an AI crash as one of three salient risks, alongside rising government borrowing costs and a major cyber-attack.