Web Summit panel warns of debt risks as Lisbon conference closes
Speakers questioned the outlook for public debt and AI investment during a closing programme compressed by storm-related disruption.
Public debt markets could trigger a future financial crisis, speakers warned during the closing day of Web Summit in Lisbon. Adam Kobeissi, founder and editor-in-chief of The Kobeissi Letter, and University of Texas at Austin economist James Galbraith also discussed risks surrounding investment in artificial intelligence.
Kobeissi said US debt trends over the next 10 or 20 years were concerning, while stressing that he did not see an imminent crisis comparable to 2008. US Treasury figures showed net interest payments reached US$1.1 trillion during the fiscal year ending in September, equivalent to 19 per cent of government revenue.
Galbraith said Chinese technology could eventually undercut Nvidia, potentially calling into question the hundreds of billions being invested in AI infrastructure by companies including Microsoft, Alphabet, Amazon and Meta. He cautioned that financial crises cannot be predicted.
The conference's closing schedule absorbed sessions cancelled following Portuguese government advice ahead of Storm Charles. The government had declared an emergency, but the storm missed Lisbon, where heavy rain and minor flooding occurred.
