Funny Money AI Machine: Are LLMs the CDOs of 2005-8?

Robin Wigglesworth@RobinWigg

The US hyperscalers have now signed up for about $1 trillion of lease commitments that don't appear in their financial data (and are on the hook for another $1 trillion of future purchase commitments). ft.com/content/a0a07c…

Nvidia, whose market cap has grown 15x since the launch of the first chatGPT in November 2022, is not the only beneficiary of the gargantuan circle-jerk deals that define the AI bubble: the biggest cloud-computing companies, including Meta, Oracle, Microsoft, Alphabet and Amazon, have also dramatically increased their spending on AI infrastructure as they look to win the race to dominate the emerging technology. Morgan Stanley projects so-called hyperscalers will spend $3.5tn between 2026 and 2028.

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Jay Martin@JayMartinBC

Before a collapse, nothing looks wrong. The numbers are printing records, the money is flowing, and the people warning about it are laughed out of the room. Last time it was housing. Today it's AI. The fire doesn't start when the rally ends. It starts inside the climb. Here's