Plato’s Allen says AI selloff reflects confusion over technology’s potential and investment returns
David Allen, head of long/short strategies at Plato Investment Management, said Thursday’s market selloff reflected investors conflating artificial intelligence’s transformational potential with its investment-return prospects. In a Bloomberg TV interview, he said excessive spending was testing market limits and rising bond yields were prompting investors to question AI’s promised productivity and profitability gains. The Nasdaq 100 fell 6.4%, erasing $2.3 trillion in value, Bloomberg reported.