AI hype fuels market overvaluation and sparks open‑source cyber threats

US stock valuations have surged to historic levels, with the S&P 500’s Shiller CAPE ratio hitting 41—well above the long‑term average of 17.3 and even higher than the 32.5 reading before the 1929 crash. Analysts warn that the surge, driven largely by expectations that artificial intelligence will dramatically boost productivity, creates a precarious bubble that could precipitate a market collapse.

At the same time, a Chinese firm, Z.ai, has released the open‑weight AI model GLM‑5.2, which can be downloaded and run on standard hardware. Security researchers say the model easily identifies software bugs and can be weaponized by hackers, with jailbreaks already circulating on Russian‑language forums. The unrestricted availability of such powerful AI tools raises new cybersecurity risks for organizations worldwide.