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A.I. Is Running on Borrowed Money (www.nytimes.com)
submitted 3 months ago by to c/technology@lemmy.world
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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.

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[–] 2 points 3 months ago

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.

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