posted in Technology
Banks are now trying to offload the AI data center debt they just underwrote
startupfortune.com/banks-are-now-trying-to-offload-the-ai-data-center-debt-they-just-underwrote/
Replying to @HaraldvonBlauzahn@feddit.org
Banks are in the business of underwriting debt and reselling it to private investors.
We’ve been reading this “End is Near” shit since COVID. Put something more on the table.
Replying to @UnderpantsWeevil@lemmy.world
Owning a debt from the AI industry is a fairly insane amount of risk
Replying to @MyVeryRealName@lemmy.world
Is it? They’ve been outperforming every other debt class for five years running.
Replying to @UnderpantsWeevil@lemmy.world
Do you think they can maintain that for another 5 years? Another 20? Is the product AI companies providing worth the valuations?
Are 5 AI companies providing more value than every other tech company in the last 50 years? Thats what the valuations are trying to say. Im still waiting on ChatGPT to cure cancer.
Replying to @AdolfSchmitler@lemmy.world
I don’t see it happening; Copilot was a failed proof of concept that crippled the Windows ecosystem and permanently tarnished Microslop’s reputation as the premier operating-system developer; the Linux community doesn’t openly embrace AI much at all, and gamers couldn’t care less about it… All the LLM services have been running at a consistent loss/debt, and CoreWeave is propped up by the only 2 companies that couldn’t even successfully launch a finished product. They need to cut their losses and pack it in; call it a day!