AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.

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.

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.

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.

Some countries, like Australia, where I live, have transitioned from defined benefits to defined contributions. Bond yields are still higher here.

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