Aware Super CIO warns of orange lights in AI financing as valuations soar

SYDNEY, Dec 9 (Reuters) – The chief investment officer of Australian pension fund Aware Super says there are flashing “orange” lights in some funding arrangements in the global artificial intelligence industry but earnings growth is backing up the sector’s current valuations.

Simon Warner, who became CIO of the A$210 billion ($135.75 billion) fund last week, said the future trajectory of the AI industry’s economic model was the most prominent financial market risk in 2026.