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Oracle on the hook to pay data centre investors even if site has no electricity

158 points · 154 comments · Betelbuddy

cmiles8 · 1790335566 · focus · HN ↗
The AI bubble has built a giant interconnected web of commitments backed by a debt bomb. It all flows back to the ability of net new cash to flow in to pay for all this, not just VC funding and circular vendor financing. We’re seeing the early signs of that starting to all implode.
1. PLenz · 1790336637 · focus · HN ↗
  When new money pays old that's a ponzie scheme
  1. cmiles8 · 1790336805 · focus · HN ↗
    In an actual Ponzi scheme yes. The AI bubble isn’t a Ponzi scheme. Infra investment ahead of revenue is fairly standard in tech and not inherently bad. However if the revenue to pay for all that infra doesn’t materialize then you have a bubble implosion. Right now while the revenue and growth numbers for AI revenue would be incredibly impressive by most standards, there’re still a drop in the bucket relative to what’s needed to stop this whole house of cards from crashing down.

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