Frankfurt (Germany), 14 Sept. (LaPresse) – “There is much debate about whether the expansion of AI in the United States is a bubble.” This was stated by ECB President Christine Lagarde during her speech in Vienna. “ECB experts have examined previous technological revolutions, and corrections have been part of their trajectory. No one knows whether it will be the same this time, but if it were to happen, we would feel the effects in Europe too,” explained Lagarde. “Most of European savers’ exposure to US tech giants is channelled through investment funds, which would be forced to sell in a falling market to meet redemption requests,” she added. “Ensuring that our financial system is capable of absorbing this potential shock is an urgent task for supervisory authorities and regulators. Banks, which are subject to ECB supervision, are well capitalised.” “None of this is a reason to delay building capacity on this side of the Atlantic. Europe already has insufficient data centre capacity to meet its own demand and, based on current trends, this gap is set to grow more than sixfold over the next decade.” “The new European gigafactories are a start, but they will only cover a fraction of the need. Europe must build at a completely different pace,” he said. “The cost of closing the European gap in data centre capacity over the next decade could reach €600 billion, including chips,” he concluded.
AI, Lagarde: “A bubble would also have an impact in Europe; we should focus on data centres”
Frankfurt (Germany), 14 Sept. (LaPresse) – “There is much debate about whether the expansion of AI in the United States is a bubble.” This was stated by ECB President Christine Lagarde during her speech in Vienna. “ECB experts have examined previous technological revolutions, and corrections have been part of their trajectory. No one knows whether it will be the same this time, but if it were to happen, we would feel the effects in Europe too,” explained Lagarde. “Most of European savers’ exposure to US tech giants is channelled through investment funds, which would be forced to sell in a falling market to meet redemption requests,” she added. “Ensuring that our financial system is capable of absorbing this potential shock is an urgent task for supervisory authorities and regulators. Banks, which are subject to ECB supervision, are well capitalised.” “None of this is a reason to delay building capacity on this side of the Atlantic. Europe already has insufficient data centre capacity to meet its own demand and, based on current trends, this gap is set to grow more than sixfold over the next decade.” “The new European gigafactories are a start, but they will only cover a fraction of the need. Europe must build at a completely different pace,” he said. “The cost of closing the European gap in data centre capacity over the next decade could reach €600 billion, including chips,” he concluded.