Deutsche Bank sees AI market frothiness and data center investment risks

Deutsche Bank warns that the summer of AI hype has turned "ugly," with markets showing signs of frothiness and potential for a sharp drop. The bank notes that while AI valuations are more sober than during the dot-com bubble, massive data center investments by tech giants could lead to negative returns. Concerns are rising about the economics of AI infrastructure, with some analyses suggesting current revenue may not cover depreciation and investment costs.