Risk is rising as big tech companies like Oracle — the ultimate financial source of the Ellison media empire — need to turn to the bond market for staggering sums to finance data centers.
And at some point they’ll claim it back
A.I. Is Running Out of Borrowed Money. FTFY.
So are most citizens.
*US-citizens
r/USdefaultism
We could have prevented this, but the boomers were cheering that their sons have to go back to the factories from all the office jobs, AI promised to automate…
crash is coming. not here yet but these businesses cant manufacture acceptance
Fun fact, over half of the S&P 500 have market caps over 10x revenue.
This has not ended well for companies in the past.
Is it borrowed money or is it actually fictional non-existent money?
The money being spent to build data centers, buy equipment and electricity is real. The fact that openAI owe softbank $40bn is real.
The future returns from these present day expenditures are imaginary. Whether softbank get their loan back is speculative. Equity raises are even more so.
I think it’s both. They borrowed money on the future of AI.
Or is it money that has now been turned into fictional non-existent money, because it was stolen from our own future, where it was previously being held (we thought) safely in trust for us. They’re stealing the money from us. From our taxes, from our government funds and institutions, from our pensions. It’s our money. At least it nominally was, before all this happened. We’re being looted. The robbers are in our vault, they are packing our money into bags labelled “AI” as we speak.
::: capitalism ::: is running on borrowed money.
Looks like the bubble is about to burst, oof
Maybe that’s why the stock market is down. Billionaires are selling and cashing in from their own stocks. They know the bubble will burst soon enough.
The entire world is running on borrowed money
Yeah, that title doesn’t make any sense. Do they mean AI companies are moving from equity to debt financing? I can’t get to the article (paywalled).
Soon it will be running on tax dollars. That’s the only way this ends.
It really doesn’t have to end that way. Those shithead rich who threw their money into this can just take the L, and not beg for a bailout.
Yeah… Sure. Except that’s not how capitalism actually works. See capitalism is just socialism for the rich.
Ok… but we can take action to make sure they dont just get a bailout for being the failures that they are.
What do you suggest?
Are you armed? If the answer is no, there is an action you can take. Learning to safely use and store firearms takes time.
Having a labor force with the means to defend itself as a deterrent is incredibly important.
National security and such
