| ▲ | epolanski 2 hours ago | ||||||||||||||||||||||
I don't think it's necessarily shady, but let's say that we're assisting at bets and capex spending we've never seen in history. Companies like Meta, Alphabet, etc that were drowning in cash flow and buying back their stock are now back at issuing shares, creating a huge number of SPVs, issuing debt, etc. There's a gigantic spending spirale with no signs of ending. Nvidia is financing companies to buy its own hardware. Mind you, this is nothing new in some businesses. Airbus and Boeing have been lending money to companies to buy their own airplanes forever. But its just all too much, with very little money coming. To understand how massive is the spending: even if every adult on the planet spent 250$ on AI per year this would still not cover anywhere near what's being invested. | |||||||||||||||||||||||
| ▲ | benji-york 2 hours ago | parent [-] | ||||||||||||||||||||||
> even if every adult on the planet spent 250$ on AI per year this would still not cover anywhere near what's being invested. Your math does not make sense. That's something like $1.5 trillion every year. That's no where near what is being spent in AI hardware buildouts on an annual basis. | |||||||||||||||||||||||
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