Street Corp. Chairman and Chief Executive Officer Ron O’Hanley said it’s “hard to see” AI as being a bubble yet, with demand supporting the massive investments being poured into the technology.

“It’s not like these data centers are being built on spec. I mean, there’s real orders behind them, and in most cases, there’s real companies behind them,” O’Hanley told Bloomberg Television’s David Ingles and Yvonne Man in an interview on Tuesday. “So right now, it’s hard to see that’s a bubble.”“The question will be whether does AI become more efficient, such that all the capacity that’s being built we don’t need now,” he said on the sidelines of the Hong Kong Monetary Authority’s Global Financial Leaders’ Investment Summit.

The global AI race has fueled a borrowing binge that has flooded markets with more than $650 billion of debt in less than two years, according to data compiled by Bloomberg. That has raised concerns among investors as the spree pushes up bond yields and increases scrutiny of what many see as lofty valuations of AI-linked companies.

US stocks just saw a punishing week for tech shares as concerns over the cost and financing of the AI investment boom intensified after Alphabet Inc.’s earnings.

“A bit of a market selloff was probably overdue,” said O’Hanley. “It certainly doesn’t seem disorderly at this point.”The State Street chief also said he’s been seeing a healthy amount of activity in Hong Kong’s hedge fund industry as global funds set up offices. But he stopped short of providing a guidance of the company’s expansion plans in the region, but adds that the city has continued to grow in importance in the global payments system.

“So we would anticipate seeing growth here” particularly around the digital and market activities, he said.