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flag U.S. AI investments outpace returns, risking a debt bubble, while China faces diminishing returns on massive AI spending, analysts warn.

flag U.S. tech firms face growing risks of an AI-driven debt bubble as soaring investments in artificial intelligence outpace returns, while China confronts an "arithmetic problem" due to diminishing marginal gains from massive AI infrastructure spending, according to analysts warning of divergent long-term outcomes for the two nations' AI strategies.

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