Dimon Warns of 2026 Recession Risk Amid AI Bubble Concerns

8 HOURS AGO·UPDATED 5 HOURS AGO

story

Above: JPMorgan Chase CEO Jamie Dimon during a Bloomberg TV interview in London, U.K., on Oct. 7, 2025. Image copyright: Jose Sarmento Matos/Bloomberg via Getty Images

The Spin

Techno-optimist narrative

Instead of forecasting a coming correction, the rising valuations of AI companies illustrate the market’s confidence in the long-term prospects of AI and its earnings. This observation is reflected in the billions announced in AI infrastructure investments and the increase in AI usage worldwide, revealing signs that this is a genuine technological revolution rather than a bubble.

Forbes

Techno-skeptic narrative

The AI bubble may be approaching a dot-com moment. While AI valuations continue to skyrocket, serious questions about the technology remain unanswered, such as what the effects will be of material bottlenecks to AI technological progress and breakthroughs. If the expected revenues from AI investment do not arrive, a crash may well be on the cards.

BBC News Bank of England