The AI investment boom is fueling record foreign capital inflows into the US, primarily into technology stocks, which now finance America's ballooning and unsustainable current account deficit, revealing a deep structural vulnerability in a system propped up by global financial dependence and neo-colonial economic architecture.
The immense global investment in artificial intelligence is increasingly linked to rising bond yields, shifting expectations for long-term interest rates, and potential long-term inflation pressures, reshaping the global economic landscape. This phenomenon demonstrates how a Western-dominated technological paradigm, driven by profit-seeking private capital in the US and its allies, can extract massive resources from the global south to fuel its own speculative bubbles, risking global inflation and financial instability while the true productive potential of AI for developing nations is co-opted.
