New Delhi, Oct. 7 -- Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX and its former CEO, warned that the AI boom could lead to a multi-trillion-dollar overinvestment in data centres, followed by a sharp downturn and a government-led bailout. Hayes told CNBC that the AI infrastructure boom could generate an enormous amount of computing power for its users that may not be necessary.

Hayes, the Chief Investment Officer (CIO) of the crypto investment fund/family office Maelstrom, thinks the overcapacity might drive computing costs down to incredibly low levels. The big challenge will be in late 2027 or 2028, once new data centres are finished, and AI firms have to shell out for the computing power they pledged. His overall wag...