Verena Ross of ESMA warned a loss of confidence in AI could hit the global economy. She cited heavy concentration of market value in a few AI firms. AI firms now hold half the S&P 500’s market value. Regulators are tracking the gap between AI valuations and macroeconomic reality. Ross noted AI firms rely on public markets, private credit and debt to fund growth. She flagged half a trillion dollars in debt issued for AI infrastructure. SpaceX recently closed a $40 billion debt deal for AI chips. Ross also warned of new AI-related cyber risks. She said a crisis could now be triggered by a cyber attack rather than liquidity issues.

• half of S&P 500 market value in AI firms
• $40B SpaceX debt deal
• $500B estimated AI infrastructure debt