When the AI bubble pops it’s going to take down the banks.
There is a lot of private credit dollars loaned to data centers and the banks are heavily invested in private credit.
It’s a house of cards priced for perfection just waiting for one of the big 5 to have a slightly off quarter.
I mean it’s Meta, anyone who doesn’t know they already have a dossier on you, has been living in a box for the last 15 years.
It is part of the grift. Anthropic and OpenAI want to go public and a huge part of their cash burn is compute expense for training new models. (In public filings they claim they are profitable … if you look at their numbers that’s only if you remove their biggest expense which is model training) At the same time they are seeing fewer gains with new frontier models. Some are also claiming the new models aren’t as good as the ones from a year ago and you are loosing your market advantage with frontier models?
What do you do if your largest expense is generating fewer gains and you want to go public? Get the government to regulate it and build a regulatory mote around your industry and freeze your advantage over your competitors while you have it. Cut that expense and go public as a profitable company!
At this point I only want to see regulations well after the AI bubble pops. Don’t take any government stakes in these AI companies as Bernie has argued for (I agree with his stances on most economic matters but he’s off base with this). Let these AI companies burn in the free market they advocate for soo much.
Musks old tricks aren’t working like they used to and the walls are closing in on him for Tesla.
The latest Roadster demo is a sign that he’s relying more and more on theatrics to sell cars. Ten years ago you could kind of buy that he would have full autonomous driving at some point. Other car companies are far more advanced than him and the Chinese’s are eating his lunch on electric vehicles and beating him in every market but the US.
He pivoted Tesla to robotics and self driving taxis but other companies are ahead of him there as well and he knows it.
He doesn’t have any tech to set Tesla apart and justify its grossly overpriced stock.
He wants to roll it under Space X to ride the only two advantages he has left Starlink and Rockets.
He knows the US government under any administration won’t let either of those two go belly up and wants to link them with his other failed or failing companies.