Harbour Asset Management’s Chris Wilson told Newstalk ZB’s Smart Money that concerns about investing in artificial intelligence are valid, because new technology can draw too much capital too quickly. Australian data-centre developer Firmus has stalled in securing funds for further build-outs. Investors remain unsure about the right price point and how much of the expected growth rests on earnings that have not yet arrived.

Wilson discussed the risks with host Tim Beveridge. Investors have readily funded AI chips, software and infrastructure for years. The question now is whether public markets are starting to push back on the valuations attached to these investments.

The large sums of money linked to AI and its promises to improve everyday life raise a further issue. Some wonder whether the sector is heading into a bubble that could burst, or whether the boom is still gathering pace and markets are simply running late.

Wilson’s comments come as attention turns to the practical challenges of funding AI-related infrastructure. The situation around Firmus highlights investor caution over pricing and the reliance on future rather than current earnings.

The discussion underscores the need for careful assessment when large amounts of capital flow rapidly into emerging technologies.