Fed Chair Warsh: If AI companies disappoint investors, capital will dry up.

Pretty harsh word from the new chairman, is this the reason of today sell off?

During the live Q&A session of his congressional testimony, he expanded on this dynamic when questioned about the sustainability of the massive high-tech capital expenditures (cap-ex).

His broader remarks on the issue were:
*"We don't know the extent to which the economy will benefit from the AI buildout. Yet it seems inevitable that what is now called 'AI investment' will soon be called just 'investment'. But let's be clear: if AI companies disappoint investors, that capital will dry up very quickly."*