US AI boom faces threat from cheaper Chinese models: Jefferies' Christopher Wood

New Delhi, July 28 (IANS) Cheaper artificial intelligence (AI) models from China could trigger massive capital destruction in the US stock market as investors begin to question the returns on the massive AI investments made by American technology giants, Jefferies' Global Head of Equity Strategy Christopher Wood has warned.

In his latest weekly note, GREED & Fear, Wood said the key risk for markets is not the growth of AI itself but when investors begin to scrutinise whether the enormous capital expenditure on the technology is generating adequate returns.