They warn that data centers, energy, and wages will push inflation risks into 2026.
AI-driven inflation is fast becoming one of the most overlooked risks of 2026, even as markets celebrate another strong run in tech stocks. This comes as shares are high, confidence is strong, and investors remain excited about the AI tech.
Yet beneath that optimism sits a growing worry. The AI boom is expensive, energy-hungry, and increasingly tied to rising prices across the economy. Global stock markets enter 2026 riding momentum from last year, with US tech giants delivering much of the earnings growth, while Europe and Asia also touch record levels.
Bonds rally as inflation cools from earlier peaks and rate cuts arrive. Many investors assume the path ahead stays smooth. But some fund managers say that view ignores how much inflation pressure is quietly building.
Both companies and governments are investing into their economies and AI, forces that boost demand, resulting in higher prices.
Sheets predicts that the US consumer price inflation will remain above the Federal Reserve’s 2% target until the end of next year as a result of heavy corporate AI investments.
A clear example of rising AI costs appears in worker pay. According to Cryptopolitan, OpenAI now gives employees an average of about $1.5 million in stock compensation. That equals roughly 46% of its revenue. The article explains how fierce competition for AI talent is pushing wages sharply higher across Silicon Valley. These pay packages add to operating losses, dilute shareholders, and feed broader inflation through rising labour costs.
He is not yet betting on a stock market correction, but is edging out of debt markets that might get rattled by an inflation shock.
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