AI Bubble Indicator: When US investors turn to Mexico
Mexican pension funds are notoriously conservative. Big tech funds courting them is a sign—but what does it mean?
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Blithely ignorant of the lessons of previous crashes and blinded by the promise of new technology, US entrepreneurs poured their resources into exponential expansion. When they ran out of money, they borrowed it in ever-growing sums. When the US market became too constraining, the investors turned their eye to Mexico.
The pattern of tech bubbles is so consistent that the playbook of the railway tycoons of the late 19th century sounds strikingly similar today. Railway infrastructure spilled over into northern Mexico as the US robber barons of the Gilded Age ran out of space across the enormity of the continental United States.
As the globe undergoes a new technological boom, Mexico has become a different sort of actor under the aegis of artificial intelligence. It’s no longer just a site for building the new technology’s infrastructure—rail back in the late 19th century, data centres in the early 21st—it is also where funds and asset managers have come looking for fresh capital.
