AI is becoming too interconnected to fail

Courtesy Sona Asset Management The AI buildout is so interconnected that a single point of failure could ripple across the multitrillion-dollar sector, a new analysis finds. Why it matters: AI investment is powering the U.S. economy, and any stumble would likely have a big impact. The idea that reining in AI development could "crash" the markets and lead to a recession is a reason President Trump has taken an anti-regulatory, anti-slowdown approach, the New York Times reports. State of play: The situation mirrors, in some ways, the mortgage market in the build-up to the financial crisis, say the authors of a new paper, highlighted in the Financial Times, from London-based Sona Asset Management.