New Delhi, Nov. 7 -- The global artificial intelligence (AI) investment cycle may have peaked or could be entering a mid-cycle correction, with rising financing costs and concerns over the returns on massive capital expenditure likely to weigh on technology investments in the coming year, according to a Jefferies report.

Jefferies in its report said financial markets were increasingly signalling reluctance to fund AI-related investments, raising questions over the sustainability of spending by major US technology companies.

"All of the above suggests the AI capex cycle may have peaked, or at least commenced a mid-cycle correction," the report said.

The report noted that the four major hyperscalers -- Microsoft, Amazon, Alphabet and Met...