> it’s not the tech giants but the banks that lent the money to the SPVs that are at risk

Banks have not been loaning AI money for some time. They hit all their regulatory safeguard limits so they can't keep loaning. Half the money being invested in AI is private capital. There is still systemic risk, because private capital is a shadow banking system and you don't know who will be affected when they go kaput. Your utility company may [read: will] go bankrupt, but the money in your personal bank account is safe. Your retirement account, however...

Private capital isn’t some dark box, at least half of it is pension funds, endowment funds, insurance companies and non profits. Then there are private credit arms of banks, sovereign wealth funds and family offices of wealthy individuals.