PIMCO CEO Emmanuel Roman said AI-related financing could total roughly $10 tln
over the next five years and may exceed reasonable levels. He estimates about $2
tln a year in new financing demand for capex, versus a U.S. bond market of
roughly $12 tln. Roman warned an economic downturn will eventually occur and
could collapse triggers, citing potential triggers such as U.S. rate rises, a
Middle East war or a euro-area crisis. When asked whether excessive caution or
excessive risk-taking is the bigger mistake, he said taking too much risk is
more dangerous. Blackstone president Gray said current market skepticism may be
healthy but that AI’s trajectory will drive further investment and materially
higher capital demand.
