posted in Technology
AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.
futurism.com/future-society/ai-financial-bubble-openai-billions-failure
Replying to @eicker@lemmy.world
I think they may have located a more extreme, even dumber business category than “too big to fail”: “too big to bail out”.
Unfortunately, nothing is too big to bail for these clowns in power, borrowing money on America’s Credit is like their reason for being, all the lawmakers save few as well as the administration that will of course need to be bribed and paid a percentage of all bail out money.
I bet they can hit 70 trillion in debt by 2029.
Replying to @bedwyr@piefed.ca
Americas credit is stretched. Bond yields are up. Not just in the USA, but elsewhere, which affects lending and investment, both of which ai companies need.
Replying to @hitmyspot@aussie.zone
Bind yields are up and will continue to increase, because countries are moving from defined benefit- to contribution based- pension scheme’s.
Which makes bonds and the guaranteed returns a less interesting investment vehicle. The big pension market under transition right now is the Netherlands, but it’s a general trend across the globe that countries have been moving from defined benefit to contribution based schemes.
Replying to @BlaestEgnen@feddit.dk
Some countries, like Australia, where I live, have transitioned from defined benefits to defined contributions. Bond yields are still higher here.
Replying to @hitmyspot@aussie.zone
It’s ultimately a global market. But every defined benefits plan active, adds to demand for bonds. Lowering the yield.
Defined contribution schemes are bad for the people selling bonds, e.g. people buying homes, governments and mega corps
Replying to @BlaestEgnen@feddit.dk
However, they are good for stock markets and large projects as investment vehicles, so they do hekp government, businesses and can be used to promote projects that benefit their members, eg union based ones can promote tjeir own industry.
The suoerannuation funds in australua have now grown large enough in aggregate to be market movers.
Replying to @hitmyspot@aussie.zone
But that’s two different funding mechanics.
Defined benefit, buys bonds. So the government wants to build a metro in Sydney, borrow the money and own 100%.
Defined contribution, buys ownership. So the government wants to build a metro in Sydney, sells 40% ownership to fund the building phase.
Replying to @BlaestEgnen@feddit.dk
Yes, different mechanisms and different outcomes. However, that doesn’t make one better for business as you mentioned. They just act in different ways for all parties.