If that happens the AI companies will first try to negotiate with their creditors and after that likely declare bankruptcy with the creditors taking over what’s left of the assets. Shareholders will be wiped out and employees will be left with nothing. Various franken-companies will emerge from the bankruptcy ashes and the world will move on with AI sans the present irrational exuberance.

> If that happens the AI companies will first try to negotiate with their creditors and after that likely declare bankruptcy with the creditors taking over what’s left of the assets.

Due to the fact that we’ve already done this before (Enron, Global Crossing) -

I’m willing to bet that there are contracts in place ALREADY, that define what happens in the event of a default.

In particular, I’ll bet that the buildings, the GPUs, the patents, etc…

All of these have probably been accounted for.

I worked at a data center that closed during the WorldCom era, and when they put the padlocks on the door, there were still websites “hosted” from the building.

I don’t know if they killed the power or what. I’d cleared out my desk long before they locked it all up. I wouldn’t be surprised to learn that these websites couldn’t get their own servers, since ownership was tied up in the courts.

In the Bay Area during that time, there were row upon row of empty office buildings.

And then the US government will say that these company's futures are in the national interest, and they will be bailed out with taxpayer dollars.