The VCs are the small players in this bubble now. Big traditional finance is helping Microsoft, Google, Meta, and Amazon build out their datacenters, and the infrastructure to power them. VCs have a lot of money compared to your startup, but they can’t finance a trillion dollars in construction projects.

They’re all so highly levered up that they can’t afford for the bubble to pop. If this goes on for another couple of years before the pop, we may see “too big to fail” wheeled out to justify a bailout of Google or Microsoft.

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impossiblefork 3 days ago | parent | next [-]

I don't think Microsoft has a lot of corporate debt relative to its profits etc., and Google has even less.

I'm sure there will be losers, but I'm not quite sure who.

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OtherShrezzing 3 days ago | parent [-]

Their recent filings show that they’re planning $100bn/yr in AI expenditures as early as 2027. They’re raising debt, rather than spending from revenues, because they get a better multiplier there.

They’re also acting as a guarantor to lots of infrastructure project - meaning the debt is their responsibility, but not on their books.

If the creditworthiness of any of the hyperscalers slip, even a tiny amount, the tech and banking sectors are in some hot water.

	▲	impossiblefork 2 days ago \| parent [-]
		Ah, I see. But 100 billion is still on the order of the current profit of each. I suppose with interest, if it's sustained over time it could be a problem though.

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HDThoreaun 3 days ago | parent | prev [-]

msft and google both made $100 billion in profit last year. Theyre nowhere near a bailout