AI fuels 'insatiable appetite' for capital

Royal Bank of Canada CEO David McKay has observed a pronounced 'risk-on' sentiment pervading the current market landscape. This heightened investor appetite for risk is largely attributed to the accelerating advancements and widespread adoption of artificial intelligence technologies. The insatiable demand for AI is creating an unprecedented need for capital investment, particularly in areas related to computing power and infrastructure. McKay's comments suggest that the pursuit of AI capabilities is a dominant force shaping investment strategies and capital allocation across various sectors, driving significant financial activity.